Guide to Register SST Account for Foreign-Owned Sdn Bhd Company

Registering SST (Sales and Service Tax) for yourself have never been easier for foreign-owned Sdn Bhd company and any foreign entities who are dealing with Malaysia local residents. For more info, please visit SST Government site.

Generally, most businesses are to register the SST Account whether is it product or service based business, as determined by the Customs Authority of Malaysia.  All companies carrying out services business are subjected to 6% SST rate. The company has to register for SST account once their annual revenue hit more than RM 500 000, while for Food and Beverages (F&B) and hotel will be minimum of RM 1.5 million. The Customs agent and credit card or charge card services do not have a threshold, but required to pay 6% SST. The veterinary and private hospital (onward and food charges only) are non-taxable under SST.

All goods sell into Malaysia also required to pay SST at a rate of 6%. This also means all foreign entities including Labuan company who deal with Malaysian required to register the SST account as well.

1. Steps for Registration for SST Account

STEP 1

• Ensure your eligibility in order to proceed to get yourself registered with the right SST code and documents required to apply.

STEP 2

• Register online at https://sst01.customs.gov.my/account/register-license/1

2. Service Tax payment to be accounted:-

• At the time when the payment is received
• On the day following a period of twelve months when any whole part or part of the payment is not received from the date of the invoice for the taxable service provided.

3. SST Payment Period is differentiated by ODD and EVEN month as follows:

Payment Period for ODD FYE-Month

Payment Period for EVEN FYE-Month

3. SST Payment Methods

There two (2) payment methods at your convenience as follows:

1. Electronically; online via https://mysst.customs.gov.my/ and payments can be made after return submission in the same portal via FPX facility with 17 banks to choose from.
2. By cheque, bank draft or money order made payable to ‘Ketua Pengarah Kastam Malaysia’ and mail to: Ketua Pengarah Kastam Malaysia
   Jabatan Kastam Diraja Malaysia
   Pusat Pemprosesan Kastam
   Kompleks Kastam Kelana Jaya
   No.22 Jalan SS6/3 Kelana Jaya
   47301 Petaling Jaya Selangor

All payments will be in Ringgit.

SST PENALTIES

• Penalties may be imposed if the following offenses are committed:
• Any deficiency on the net tax payable
• No SST return is made
• An SST return is submitted without payment or a lesser payment
• Failure to register if you are eligible within a given time frame

The Late Payment Penalty Amount for SST account holders imposed by the Customs Authority is as follows:

10% – of the amount not paid after the last date of the first 30 days period.
15% – of the amount not paid after the last date of the second 30 days period.
15% – of the amount not paid after the last date of the third 30 days period.

The above penalty may be higher at the discretion by the Customs Authority.

Terminating SST Account

Applicants can apply to the Director General of the Royal Malaysians Customs Department with the reason of the cancellation. The cancellation of SST account can only be done with the consent of the Director General of the Royal Malaysians Customs Department.

Feel free to contact us for more information by emailing us at contact@malaysiabizadvisory.com to assist you to open SST account and SST payment service if you required this service to smoothen your operations in Malaysia.