

FIABCI-Malaysia: Morning Talk (July 2025 session)
Topic: Stamp Duty Self-Assessment & SST Scope Expansion
Speaker: Margaret Lee, PWC Taxation Services Sdn Bhd, and Wafiy Anwary Mustafa, PWC Taxation Services Sdn Bhd
Key highlights:
Stamp Duty include the applicability only to instruments (not transactions), deadlines for stamping based on location of execution, and common chargeable instruments like property transfers and employment contracts. Notably, employment contracts finalized before 1 Jan 2025 are now exempt. A new Stamp Duty Audit Framework effective 1 Jan 2025 outlines audit procedures, voluntary disclosures, and penalty structures. The Self-Assessment System (SAS) for stamp duty will be implemented in phases from 2026–2028, emphasizing timely filing and accurate returns.
The SST section covers the expansion of taxable services and goods. Effective 1 July 2025, updates include:
- Sales tax rate increases (up to 10%) and clarification that local agricultural produce is exempt.
- Service tax (8%) now applies to rentals/leasing (except for housing and overseas assets), and construction services (6%) excluding residential buildings.
- New rules apply to education, private healthcare, wellness, and financial services, with specific exemptions for Malaysian citizens, OKU cardholders, and basic financial transactions.
- Transitional rules and B2B exemptions are introduced for certain inter-company arrangements.
The talk concludes with strategic considerations for businesses, stressing the need for compliance readiness, financial impact reviews, and operational adjustments.