Indirect Tax Alert
Stay updated
Issue No. 42/2024 | 2 December 2024
Service Tax Policy No. 6/2024 (Amendment No. 1) – Exemptions from Paying and Charging Service Tax on Maintenance or Repair Services Relating to Maintenance, Repair and Overhaul (MRO) Activities
Following the issuance of the Service Tax Policy No. 6/2024 (“STP 6/2024”) dated 30 April 2024 by the Royal Malaysian Customs Department (RMCD) to provide exemptions from paying and charging service tax on certain maintenance or repair services relating to maintenance, repair and overhaul (MRO) activities, the RMCD recently issued the Service Tax Policy No. 6/2024 (Amendment No. 1) [“STP 6/2024 (A1)”] dated 29 November 2024 to amend and replace STP 6/2024.
The amendments are summarized in the Appendix A of the STP 6/2024 (A1) and they are mainly editorial amendments.
PwC Comment
There is no significant amendment in the STP 6/2024 (A1) as the amendments are mainly editorial amendments intended to improve the clarity and understanding of the STP 6/2024. We feel that the important clarification made in STP 6/2024 (A1) is it clearly specifies foreign airlines/ shipping companies receiving MRO services in Malaysia as one of the groups eligible for the exemption instead of using the general term “recipients of MRO activity services located outside the country” in STP 6/2024.
If you think your business may be affected by the above amendments or if you need any clarification or assistance, please do not hesitate to contact us and we would be happy to assist you.
Contact us
© 2024 PwC. All rights reserved. "PricewaterhouseCoopers" and/or "PwC" refers to the individual members of the PricewaterhouseCoopers organisation in Malaysia, each of which is a separate and independent legal entity. Please see www.pwc.com/structure for further details. Read about our commitment to your privacy here.