(TAX UPDATE) Expanded SST Timeline Explained

Malaysians is praying hard today.

Since last year, the story of Malaysia’s Expanded SST (Sales and Service Tax) keeps changing like Malaysian weather . sunny one minute, rain the next.

Here’s the latest, in case you also blur like me.

Chronology of The Expanded SST

18 October 2024
Budget 2025 tabled. Government officially announces intention to expand SST scope and revise tax rates. Everyone start to panic.

28 April 2025
Last minute twist — MOF announced deferment. Originally supposed to start 1 May 2025, postponed for “further refinement” after stakeholders (business owners, industry groups) complain.

3 June 2025
RMC released updated SST tariff list… only to withdraw it later.

5 June 2025
Correction issued. SST expansion postponed to 1 July 2025, not 1 June as rumoured.

9 June 2025
Official gazette finally out. Confirm:

New tax rates
More taxable services
Targeted exemptions for essential goods and MSMEs

SST 2.0 happening, like it or not.

11-17 June 2025

Tax consultants (including us) busy publishing guidance. Key point is the grace period until 31 December 2025. Businesses got time to adapt, no penalty yet.

16 June 2025
Government remind everyone to start preparing, follow transitional rules for invoicing and delivery.

18 June 2025
Finance Minister explain the bigger picture:

More revenue for the country
Progressive tax model
Promise to minimise rakyat burden

22 June 2025
Registration updates:

Existing SST holders can update from 24 June 2025
New SST applications open 1 August 2025

1 July 2025
Expanded SST officially kicks in. New rates, more services, nationwide implementation.

1 August 2025
New SST registration opens for affected businesses.

1 January 2026
Grace period ends. Full enforcement with penalties begins.

But Wait… 24 June 2025 : Rumour of Another U-turn?

Today’s hot topic … rumour says government might announce another change.
Business owners, tax agents, accountants semua on standby mode.

We will update you the moment anything is confirmed.

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