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 gazettement of the service tax legislations concerning the expansion of service tax scope, said the Association of Banks in Malaysia, the Association of Islamic Banking and Financial Institutions Malaysia and the Malaysian Investment Banking Association.
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The associations said the imposition of the service tax on financial services would be in line with the legislation and relevant guidelines gazetted or issued by the Finance Ministry and the Customs Department.
“Service tax will be imposed at a rate of 8% on fee and commission-based financial services,” they said. —Bernama
