Navigating Malaysia’s New SST on Commercial Leases: A Guide for Landlords and Tenants
Introduction
Effective July 1, 2025, Malaysia has expanded its Sales and Service Tax (SST) to include commercial rental and leasing services, introducing an 8% tax that will significantly impact the real estate market. This change presents new challenges and obligations for both landlords and tenants. Understanding the nuances of this new regulation, including its exemptions and the critical concept of “non-reviewable contracts,” is essential for navigating the evolving landscape of commercial real estate in Malaysia. This article provides a clear and comprehensive guide to the new SST, offering actionable insights for property owners, business tenants, and real estate professionals.

