If your business rents an office, shop lot, warehouse, factory, kiosk, clinic, studio, or commercial space, the 6% rental service tax rules may affect your monthly rental cost.
Many SME tenants are searching for SME rental SST exemption because they want to know whether they need to pay service tax on rental Malaysia.
The good news is that eligible small businesses can apply for MyPMK SST exemption for rental through the Royal Malaysian Customs Department’s MyPMK system.
This guide explains who qualifies, how MyPMK registration works, what details you need to prepare, and how to get your MyPMK certificate.
🔑Key Takeaway
- SME rental SST exemption is mainly for eligible micro, small, and medium enterprise tenants.
- Rental or leasing service tax is currently 6% from 1 January 2026.
- The PMKS tenant annual sales threshold for exemption was increased to RM1.5 million from 1 January 2026.
- The exemption is applied through MyPMK, a system developed by the Royal Malaysian Customs Department.
- The MyPMK certificate is different from an SME Corp certificate.
- Tenants must declare their business details and annual sales honestly.
- If the declaration is false, Customs may recover the service tax that should have been paid.
- SME tenants should update their annual sales with Customs every year.
- Businesses should keep proper rental, SST, tax, and e-Invoice records for compliance.
- A SME einvoicing software like JomeInvoice helps SMEs manage business documents and LHDN e-Invoice workflows in a more organised way.
Current Rental Service Tax Rate: 6%
From 1 January 2026, the service tax rate on rental or leasing services was reduced from 8% to 6%.
This means SMEs should refer to the latest 6% rental service tax rate when reviewing rental invoices.
For SME tenants, the main question is not only the rate. The main question is whether your business qualifies for tenant SST exemption Malaysia and whether you have completed MyPMK registration correctly.
Who Qualifies for MyPMK SST Exemption for Rental?
To qualify for MyPMK SST exemption for rental, the tenant must meet the conditions set by the Royal Malaysian Customs Department.
Based on current updates, the PMKS tenant annual sales threshold for exemption was increased to RM1.5 million from 1 January 2026.
The key conditions include:
• The tenant must register as a PMKS through MyPMK.
• The tenant’s annual sales must not exceed the threshold set by the latest policy.
• The annual sales amount should follow the latest year of assessment information declared to LHDN, in accordance with MyPMK requirements.
• The tenant must update annual sales information with Customs every year.
• The tenant must provide accurate information to Customs.
• Customs may recover the service tax if the declaration is false or the tenant is not eligible.
This means SMEs cannot simply tell the landlord that they are exempted. They need to complete MyPMK registration and produce the correct certificate.
MyPMK Certificate vs SME Corp Certificate
This is an important point.
Important: The MyPMK certificate is not the same as an SME Corp certificate.
Some business owners may already have an SME Corp certificate or may assume that their business size automatically qualifies them for rental SST exemption Malaysia.
That is not enough.
For this exemption, the certificate mentioned in the process is the MyPMK certificate issued through the Customs MyPMK system.
You need to apply through MyPMK, complete the required declaration, verify your email, log in again, and print your MyPMK certificate.
Step-by-Step: How to Apply for SME Rental SST Exemption Using MyPMK
Follow these steps to apply through MyPMK.
Step 1: Go to the MySST Website
Visit the MySST website.
Look for the MyPMK section.
This is where SME tenants can start the MyPMK registration process for rental SST exemption.
Step 2: Click MyPMK
Once you are on the MySST website, click MyPMK.
Make sure you are using the Customs MyPMK system, not a different portal with a similar name.
Step 3: Click Pendaftaran Baru
Click Pendaftaran Baru to start a new registration.
This means you are applying for a new MyPMK account and declaration.
Step 4: Fill In Your Business Details
Fill in the required company information.
This may include:
• Type of company or business
• Director name
• Identification number
• Business name
• Registered address
• Business registration number
• Tax code or TIN
• Phone number
• Registered email address
Check each field before submitting.
Small typing mistakes can delay your application or affect the accuracy of your certificate.
Step 6: Fill In Annual Sales and Monthly Rental
Next, enter your annual sales and monthly rental amount.
This section is important because the SME rental SST exemption depends on eligibility conditions.
Your annual sales should follow the latest assessed annual income declared to LHDN.
Ensure the amount entered is consistent with the latest information declared to LHDN and supported by your business records. Keep supporting records in case Customs requests clarification later.
Step 7: Complete IC Verification
For the IC verification step, enter the identification card number to verify your IC number, then click Sahkan.
Make sure the IC number entered is the same IC number used during the MyPMK registration process.
Step 8: Click Hantar
After checking all the details, click Hantar.
Your MyPMK registration will be submitted.
Step 9: Check Your Email
After submission, check the email address used during registration.
You should receive a verification email. After successful verification, you will receive a second email containing your Login ID and password.
If you do not see the email, check your spam or junk folder.
Step 10: Log In to MyPMK
Once you receive your login details, go back to MyPMK and log in.
Use the details provided through email.
Step 10: Download and Save Your MyPMK Certificate
After logging in, you should be able to print your MyPMK certificate.
Save a digital copy and keep a printed copy.
You may need to provide this certificate to your landlord, property manager, finance team, accountant, or auditor.
Start Your SME e-Invoice Trial for RM2!
Applying for SME rental SST exemption through MyPMK is one part of SME compliance, but your business still needs proper rental records, SST documents, and LHDN e-Invoice records. JomeInvoice helps SMEs manage e-Invoice submission, status tracking, and bulk upload in one place.
What Happens After You Get the MyPMK Certificate?
After getting the MyPMK certificate, share it with the landlord or rental service provider.
This helps them verify that your business has registered under MyPMK for rental SST exemption.
Keep the certificate together with your rental documents.
Your rental compliance file should include:
• Tenancy agreement
• Monthly rental invoices
• Rental payment proof
• MyPMK certificate
• Email correspondence with landlord
• SST-related notices
• LHDN income assessment records
• e-Invoice records, if applicable
This makes future checking easier.
Common Mistakes SMEs Should Avoid
SMEs should avoid these common mistakes when applying for SST exemption rental Malaysia.
Mistake 1: Using SME Corp Certificate Instead of MyPMK Certificate
SME Corp certificate and MyPMK certificate are not the same.
For tenant SST exemption Malaysia, apply through MyPMK.
Mistake 2: Entering the Wrong Annual Sales
Your annual sales should match the latest assessed annual income declared to LHDN.
If the amount is wrong, your exemption may create compliance risk.
Mistake 3: Not Updating Annual Sales Every Year
Customs requires SMEs to update annual sales information every year.
Do not treat MyPMK registration as a one-time task.
Mistake 4: Not Keeping Rental Records
Do not rely only on emails or verbal confirmation.
Keep your tenancy agreement, rental invoices, payment proof, and MyPMK certificate in one folder.
How Rental SST Exemption Connects with e-Invoice Compliance
Rental SST and e-Invoicing are different compliance areas.
But both require accurate business records.
For SMEs, rental documents may connect with e-Invoices in a few ways:
• Your landlord may issue an e-Invoice for rental.
• Your company may need to store rental invoices for accounting.
• Your finance team may need to match rental payment proof with invoices.
• Your accountant may need these records for tax filing.
• Your business may need to show supporting documents during review.
If your SME receives many invoices every month, manual filing can become messy.
This is why businesses should create a simple document management process.
Suggested Monthly SOP for SME Rental and SST Records
Use this simple monthly SOP.
• Save every rental invoice.
• Save every e-Invoice received from the landlord.
• Save payment proof.
• Keep your MyPMK certificate in the same compliance folder.
• Check whether SST is charged correctly.
• Review whether your MyPMK details need updating.
• Match rental documents with accounting records.
• Back up the files in cloud storage.
• Share the records with your accountant when needed.
This helps your business stay organised.
Get compliant before 2027 enforcement kicks in
JomeInvoice integrates with POS, eCommerce, and accounting software, so your team can reduce manual uploads, track submissions, and keep records organised in one place.
FAQ About SME Rental SST Exemption and MyPMK
What is the SME rental SST exemption?
SME rental SST exemption allows eligible PMKS tenants to receive exemption from service tax on rental or leasing services, subject to Customs conditions.
What is the current rental service tax rate in Malaysia?
From 1 January 2026, the service tax rate on rental or leasing services is 6%.
Who should apply for rental SST exemption Malaysia?
SME tenants who rent commercial premises and meet the Customs conditions should check whether they qualify for rental SST exemption Malaysia.
Is MyPMK certificate the same as SME Corp certificate?
No. The MyPMK certificate is not the same as an SME Corp certificate. For this exemption, SMEs need to apply through the Customs MyPMK system.
How do I apply for MyPMK registration?
Go to the MySST website, access MyPMK, select Pendaftaran Baru, complete the required business information, submit the form, verify your email, log in, and download your MyPMK certificate.
What information is needed for MyPMK registration?
You may need business type, director name, identification number, business name, address, registration number, tax identification number, phone number, email, annual sales, and monthly rental amount.
What happens if I provide wrong information to Customs?
If the declaration is false, Customs may recover the service tax that was not eligible for exemption. Always use accurate information.
Do SMEs need to update annual sales every year?
Yes. SMEs need to update annual sales information with Customs every year, based on the conditions stated for the exemption.
How does JomeInvoice help with SME e-Invoicing compliance?
JomeInvoice helps SMEs manage LHDN e-Invoice workflows, customer and supplier records, submission status, bulk upload, and better invoice organisation.
