Effective 4 July 2025, the following rental/leasing services are no longer subject to Service Tax (SST) in Malaysia
- Rental of aircraft (excluding drones)
- Rental of ships (excluding floating platforms)
This is the latest exemption announced by the Ministry of Finance, benefiting the aviation and maritime industries.
!! Please take note this exemption comes into effect on 4 July 2025.
Quick facts about SST on rental/leasing services:
- Service category: Rental / Leasing Services
- Tax rate: 8%
- Threshold: Past 12 months’ rental income exceeds RM1,000,000 (excluding residential rental)
Sounds like a great deal, right? Just remember — not all rentals are exempted, so make sure you understand the scope to avoid any missteps!
Source from: Service Tax Policy No.2/2025 (Amendment No.1)
**Information updated as 26.07.2025
(201706002678 & AF 002133)