3728619 - How to Report 8% Service Tax with 2% Exemption in SST-02 Report?

According to Malaysia Service Tax Policy No. 2/2025 (Amendment No. 3) dated 23 January 2026, certain rental or leasing services are subject to an 8% statutory service tax rate with a 2% exemption. This results in an effective tax charge of 6%. Users need to configure the tax box mappings to ensure correct reporting in the SST-02 forms, where:
•    The taxable service value should be declared under the 6% tax rate.
•    The same service value should also be declared in Field Field 18(c)(3) – Other Exempted Services to reflect the 2% exemption.

This note provides configuration guidance to report this tax exemption scenario correctly in the SST-02 return forms submitted to the tax authority in Malaysia.

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SAP Document and Reporting Compliance, DRC, Malaysia, SST02 Report, Service Tax, Tax Exemption, Tax Box Mapping, Service Tax Exemption, 8% Service Tax, 2% Exemption, Rental Services, Leasing Services, Section 34(3)(a) Service Tax Act 2018 , KBA , FI-LOC-FI-MY , Malaysia , How To