Banks to begin charging service tax on financial service from July 1 under expanded scope


RHB Research said that in 1Q25, some banks reported key financial metrics that were trailing 2025 guidance.

KUALA LUMPUR: Member banks of Malaysia's banking associations will begin implementing the service tax on relevant financial services in phases from July 1, 2025, in accordance with the guidelines issued by the Royal Malaysian Customs Department.

This follows the recent gazettment of the service tax legislations concerning the expansion of service tax scope, said the Association of Banks in Malaysia (ABM), the Association of Islamic Banking and Financial Institutions Malaysia (AIBIM), and the Malaysian Investment Banking Association (MIBA).

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