As advised in our previous Customer Advisory issued on February 29, 2024, there are changes to the Malaysia Service Tax Law that take effect from 1 March 2024.
Services in the new category that would be subject to 6% service tax will include MCC (Multi Country Consolidation- 100545 material code). This is a product offering that is currently bundled with related ocean charges. As your logistics business partner, we recommend that you consider splitting the charges to avail tax exemptions on MCC components not covered by the new tax regulation including but not limited to ocean freight, ocean charges, cargo insurance premium, and security charges. Should there be no changes in the current bundled invoicing, Maersk would adopt the 6% service tax rates for MCC (Multi Country Consolidation- 100545 material code).
If you have any questions concerning the above, please reach out to your regular contact person.
Please note that the dates mentioned in the advisory are related to the upcoming change in law. Our teams are dedicated to making this transition as smooth as possible for parties involved. We will keep you informed about any updates or changes related to the change.
We appreciate your patience and understanding as we navigate this change.
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