Expansion of Sales and Service Tax (“SST”) to Financial Services – Effective 1 September 2025

The Government has announced that the SST will be expanded to cover certain financial services, effective 1 July 2025. This phased implementation, as outlined by the Royal Malaysian Customs Department (“RMCD”), will apply specifically to financial service providers.

Effective 1 September 2025, SST at a rate of 8% will be imposed on specified fees and charges as prescribed under the Service Tax Regulations and detailed in RMCD’s Guide on Financial Services, unless expressly exempted.

To read more information:

Visit the RMCD MySST website at https://mysst.customs.gov.my and navigate to Legislation & Guides > SST Guides > Industry Guides > Guide on Financial Services. You may also read more at our Frequently Asked Questions (FAQ) below.