Overview of Malaysia SST (Sales and Service Tax) Supported in Kintsugi

Malaysia (MY) — Sales and Service Tax (SST): What Kintsugi Supports

Malaysia uses a Sales and Service Tax (SST) system, not a Value Added Tax (VAT). SST is administered at the federal level by the Royal Malaysian Customs Department (RMCD) and applies to both goods and services sold or consumed in Malaysia.

Kintsugi currently supports SST compliance for SaaS and digital service businesses, covering both resident businesses with a physical presence in Malaysia and non-resident foreign service providers (FSPs) selling digital services to Malaysian customers.

What Kintsugi supports for Malaysia:

• SST registration for non-resident digital service providers under the Service Tax on Digital Services (SToDS) scheme via the MySToDS portal

• SST registration for resident businesses providing taxable services under the standard domestic scheme

• Tax calculation at the applicable rate for SaaS transactions (B2B and B2C)

• Quarterly filing support for non-resident foreign registered persons (FRPs)

• Bi-monthly filing support for resident businesses

Tax rates supported:

• 8% service tax on digital and taxable services (including SaaS)

• 10% sales tax on taxable goods (note: goods are out of scope for Kintsugi's current Malaysia support)

What is currently out of scope:

• Low Value Goods (LVG) sales tax

• Newly expanded SST categories effective July 1, 2025 (construction, rental, healthcare, financial services)

• Physical goods manufacturing and import tax

Governing authority: Royal Malaysian Customs Department (RMCD)

Portal: MySToDS (for non-resident digital service providers), MySST (for resident businesses)

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