Discussing the Upcoming SST Expansion and a New Facebook Group
Today, we're discussing important updates regarding the upcoming Service Tax (SST) expansion in Malaysia and sharing some exciting news about our channel's Facebook group. We want to explore the impact of these changes on both foreigners and local business owners.
Exciting News: Our Facebook Group is Open!
Great news! Our channel now has a Facebook group. This was made possible by a generous "boss" from our community who set it up for us. We are incredibly grateful for his help and guidance, especially since we are not very familiar with Facebook in China.
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We'll be sharing the group link in the comment section.
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We hope this will provide a platform for more interaction and discussions with our viewers.
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We will be the manager of this group and we will try to make everyone happy.
SST Expansion: Impact and Implications
On July 1st, the scope of the SST will officially expand, with rates ranging from 5% to 10%. This tax isn't just for foreigners; it affects both locals and expats. We want to discuss how this tax impacts you and other business owners. Please share your thoughts and concerns in the comments section.
Sales Tax: Specific Examples
The sales tax will affect various goods. Some examples include:
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King crab
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Strawberries
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Pine nuts
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Essential oils
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Silk fabrics
These items will be subject to a 5% sales tax. High-end items like racing cars, bicycles, antiques, and famous paintings will also be taxed. We are unsure how the tax will impact everyone and welcome your feedback on this topic.
Service Tax: Key Changes
Several sectors will experience changes in service tax. Here are some notable examples:
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Rental and Rental Service Industry: An 8% service tax will be applied to services exceeding 500,000 units (e.g., house and car rentals), particularly impacting platforms like Airbnb and properties with multiple rentals.
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Construction Service: 6% will be added to construction services related to decoration.
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Financial Services: An 8% service fee will be charged on financial services, likely affecting financing activities.
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Non-Civilian Private Medical Healthcare: A 6% service fee applies to profitable non-civilian private medical healthcare exceeding 1.5 million MYR, potentially affecting the cost of private hospitals for foreigners.
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Private High-Level Education: A 6% service fee will be levied on non-citizen students receiving over 60,000 MYR annually in private high-level education, impacting international schools. This could increase tuition costs significantly.
The Impact on Daily Life and the Economy
The SST expansion adds to the rising cost of living. The exchange rate is already high, and prices are increasing. Combined, these factors could lead to a significant increase in overall expenses. We discussed the rising costs of living and suggest that people should prepare some extra money. It is essential to come and experience Malaysia to make an informed decision.
Beauty Services and the SST
Beauty services, such as facial and hair care with annual sales exceeding 500,000 MYR, will be subject to an 8% service fee. While this may primarily affect middle to high-income individuals, it also raises concerns about affordability for necessary treatments like acne or scar removal, which require long-term care.
SST vs. GST: A Brief Explanation
SST is a direct, one-off tax. GST (Goods and Services Tax) is considered more transparent. SST is simpler for small businesses and easier for the government to collect. With SST, consumers might not immediately feel the price increases. However, when the government needs more revenue, they might expand the scope and raise the rates.
Call to Action and Community Input
We encourage everyone to share their thoughts on the SST expansion and its potential impact on their respective industries. Your expertise and insights will greatly benefit the community. We value your suggestions and comments. Remember to like, subscribe, and turn on notifications for more updates!
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