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flag Malaysia cuts MSME rental tax to 6% in 2026, exempts new businesses and raises turnover threshold.

flag Prime Minister Anwar Ibrahim announced a reduction of the service tax on MSME rentals from 8% to 6% starting in 2026, citing financial strain from the previous rate increase. flag The tax, introduced in July 2025 on non-residential rentals, will now see newly established MSMEs exempt for one year, and the tax exemption threshold raised to RM1.5 million in annual turnover. flag The change, part of broader economic support, is expected to cost nearly half a billion ringgit in annual revenue but aims to boost business resilience and growth.

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