If your business operates from an office, shophouse, or any non-residential property managed by a Joint Management Body (JMB) or Management Corporation (MC), this update is relevant to you.

The Royal Malaysian Customs Department issued Service Tax Policy No. 3/2026 on 24 June 2026. Under this policy, the Minister of Finance has determined that maintenance or repair services for non-residential premises provided by a JMB or MC are not a taxable service. As a result, maintenance charges and sinking fund contributions billed by a JMB or MC to property owners are not subject to service tax, covering both residential and non-residential buildings.

This exemption takes effect from 1 July 2026 and does not apply to any period before 1 July 2026. If service tax was payable on your maintenance charges up to 30 June 2026, that amount must still be remitted to RMCD. Also, if a JMB or MC uses maintenance funds to pay for taxable services from third-party providers, service tax on those services still applies.

If you are uncertain how this policy affects your business, or whether your past service tax payments are in order, our CFO advisory team can help you review your position. WhatsApp us at 010-246 2151.