cch2026-05-0610 min read
Rental and Leasing Services Now Subject to 8% Service Tax
Effective 1 July 2025, rental and leasing services will be subject to an 8% service tax under Group K, First
Schedule of the Service Tax Regulations (STR) 2018. This marks a significant expansion of the service tax
regime, impacting a wide range of businesses engaged in leasing or renting tangible assets in Malaysia
Authors: Pugaleshwaran Raja Kumaran, Executive Director, Tax, and Steffi Manisha Arokiam, Associate Director, both at ThinkTx Consultants Sdn Bhd.