Service Tax (Imposition of Tax for Taxable Service in respect of Designated Areas and Special Areas) (Amendment) Order 2024

The Service Tax (Imposition of Tax for Taxable Service in respect of Designated Areas and Special Areas) (Amendment) Order 2024:

1. Amends the existing 2018 Order that imposes service tax on certain services provided within or between designated areas (e.g. Labuan, Langkawi, Tioman) and special areas (e.g. Joint Development Area).
2. The key amendment is the introduction of logistic services as a new taxable service category under this order.
3. Logistic services are now imposed service tax when provided:
   1. Between designated areas
   2. Between special areas
   3. From designated areas to special areas
   4. From special areas to designated areas
4. Logistic services cover supply chain services like freight forwarding, warehousing, shipping, etc. as well as delivery and courier services.
5. Persons providing such logistic services between or within the specified areas will now be required to charge and account for service tax.

In summary, the Order expands the scope of taxable logistic services that are subject to service tax when provided within or between designated and special areas in Malaysia.

References:

Service Tax (Imposition of Tax for Taxable Service in respect of Designated Areas and Special Areas) (Amendment) Order 2024

 Service Tax (Imposition of Tax for Taxable Service in respect of Designated Areas and Special Areas) Order 2018