PUTRAJAYA: Micro, small and medium enterprises (MSMEs) will benefit from a higher exemption threshold for sales tax on rental services, Prime Minister Datuk Seri Anwar Ibrahim announced today.
The government will now exempt businesses with total annual sales of up to RM1.5 million from service tax, up from the previous threshold of RM1 million.
The move aims to ease the tax burden on smaller firms, which Anwar said “remained a challenge for many businesses”despite an earlier increase from RM500,000 to RM1 million.
In addition, the sales and services tax (SST) on rental services has been reduced from 8 per cent to 6 per cent, at a cost of nearly RM500 million in revenue, the
Prime Minister said during a special monthly address at the Prime Minister’s Department.
Anwar added that the government will continue reviewing tax policies to support SME growth and reduce compliance costs.
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