From 1 July 2025, construction work services were subjected to 6% service tax under the amended Service Tax Regulations 2018 which has come into force. This article discusses the latest 2026 updates on the construction work services SST and specifically, separate tax treatment to the supply of construction materials/goods and construction work services, treatment of retention sums, and the application of the exemption for non-reviewable contracts.
Brandon Shen Shi Han, Partner
(Construction Dispute Resolution and Tax Litigation)