Property managers back govt move to exempt tax on non-residential service charges

KUALA LUMPUR (June 26): The Malaysian Institute of Property and Facility Managers (MIPFM) welcomes and commends the government’s decision to exempt service tax on service charges and sinking fund contributions for non-residential buildings effective July 1, 2026, according to a press statement issued on Friday.

The association stated that the exemption is a significant and timely measure that addresses concerns raised by the property and facility management industry regarding the financial impact of the tax on property owners, businesses, joint management bodies (JMBs), management corporations (MCs), and building occupiers.

The exemption is expected to help ease the financial burden on the management of non-residential stratified properties and provide greater certainty to property owners, businesses, and management bodies in planning their operational and maintenance expenditures.

MIPFM president Haji Ishak Ismail (pictured) said: "The exemption is a positive outcome of constructive collaboration between the government and industry stakeholders. It reflects the importance of continuous dialogue in developing policies that are practical, balanced, and responsive to the needs of the industry, while safeguarding the interests of property owners and the public".

The association remains committed to working closely with the government and relevant agencies to promote sound policies, strengthen industry practices, and enhance the standards of professional property and facility management.

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