Service Tax 2025: Key Compliance Update for Private Healthcare, TCM, and Allied Health Providers
Effective 1 July 2025, Malaysia will expand the Service Tax (SST) framework to include private healthcare facilities, traditional and complementary medicine (TCM) practitioners, and allied health service providers. Providers with a taxable turnover of RM1.5 million or more over any 12-month period must charge a 6% SST on services delivered to non-citizens.
This change covers a wide range of services including medical and dental care, physiotherapy, diagnostic testing, traditional Malay, Chinese and Indian medicine, and other allied health treatments. Sales of certain medical aids such as wheelchairs, prosthetics, and hearing aids are exempt.
To avoid compliance risks such as incorrect service classification or failure to register, providers should start reviewing their billing systems and operational processes now.
For further details, consult the official guidance from the Royal Malaysian Customs Department to ensure a smooth transition under the new SST requirements.
