Beginning from the 1st of March, 2024 there will be an 8% Sales & Service Tax (SST) levied on the trading fees on Tokenize Xchange Malaysia.
This is in line with the Service Tax (Digital Services) Regulations (2020) and the Amended (Amendment 2/2020) — Service Tax (Digital Services) Regulations (2020).
Please refer to the information below to better understand what is SST and how will it affect your trading on Tokenize Xchange Malaysia.
1. What is SST?
Sales and Service Tax (SST) comprises sales and service tax.
- A Sales Tax is a single tax levied on all taxable goods manufactured and sold, used, or disposed of by a registered manufacturer in Malaysia or imported into Malaysia.
- A Service Tax is a single tax charged on any taxable services provided in Malaysia by a registered person in carrying on a business.
2. What is the prevailing SST Rate?
For Service Tax: General rate of 8%
3. Where can I obtain more information about SST in Malaysia?
Please refer to the official website of the Royal Malaysian Customs Department (RMCD) at https://mysst.customs.gov.my/ for SST-related information, legislation, and guidelines.
4. How will I be affected by this introduction of the SST?
Fees paid by users will see a premium of 8%. As of now, Tokenize Xchange Malaysia only charges users a fee of 0.8% from all orders fulfilled as a Taker Order and 0.1% for a Maker Order.
5. Can you provide an example?
Trader A would like to place a Buy order worth RM10,000.00. His order would be subjected to a fee of 0.8% which is equal to RM80.00. The 8% SST charge will be levied on the trading fee, which is RM4.80. This brings the total payable amount to RM10,000.00 + RM80.00 + RM6.40 = RM10,086.40.
If the Order is filled as a Maker, only 0.1% of the trading fee and SST will be charged and the remaining 0.7% will be immediately refunded back into his account. Examples can be found here.
| Item | % | MYR |
| Bid Amount | RM10,000.00 | |
| (+)Trading Fee | 0.8 | RM80.00 |
| (+) SST | 8 | RM6.40 |
| Total | RM10,086.40 |
Trader B would like to place a Sell order worth RM10,000.00. His order would be subjected to a fee of 0.8% which is equal to RM80.00. The 8% SST charge will be levied on the trading fee, which is RM6.40. This brings the total receivable amount to RM10,000.00 — RM80.00 — RM6.40 = RM9,913.60.
If the Order is filled as a Maker, only 0.1% of the trading fee and SST will be charged and the remaining 0.7% will be immediately refunded back into his account. Examples can be found here.
| Item | % | MYR |
| Bid Amount | RM10,000.00 | |
| (-)Trading Fee | 0.8 | RM80.00 |
| (-) SST | 8 | RM6.40 |
| Total | RM9,913.60 |
6. I am still not sure and would like to ask more.
Please email us your questions or queries to: support@tokenizemalaysia.zendesk.com