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Service Tax Formula:
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Service Tax is a consumption tax levied on specific services provided by businesses in Malaysia. The current standard rate is 8% of the service value, applied to taxable services as defined by the Royal Malaysian Customs Department.
The calculator uses the Service Tax formula:
Where:
Explanation: The calculation multiplies the service amount by the standard 8% tax rate to determine the service tax payable.
Details: Accurate service tax calculation is essential for businesses to comply with Malaysian tax regulations, properly invoice customers, and fulfill their tax reporting obligations to the Royal Malaysian Customs Department.
Tips: Enter the amount of the taxable service in dollars. The amount must be a positive value. The calculator will compute the 8% service tax automatically.
Q1: What services are subject to service tax in Malaysia?
A: Service tax applies to specific services including professional services, hotel accommodation, food and beverage, telecommunications, and other designated services as specified by regulations.
Q2: Who is required to register for service tax?
A: Businesses providing taxable services with annual taxable service value exceeding RM500,000 must register with the Royal Malaysian Customs Department.
Q3: Are there different service tax rates in Malaysia?
A: While the standard rate is 8%, some specific services may have different rates or exemptions. Always check the latest regulations from the Royal Malaysian Customs Department.
Q4: How often must service tax be paid?
A: Registered businesses typically need to submit service tax returns and payments every two months, by the last day of the following month.
Q5: Can service tax be claimed as input tax?
A: Service tax is generally not claimable as input tax, unlike SST (Sales and Service Tax) which has different mechanisms for input tax credit.