Starting July 2025, if you provide private healthcare services to non-Malaysian citizens, you’ll be required to charge 6% Service Tax (SST) !

What services are subject to SST?

Private healthcare services provided to non-Malaysian citizens, including:

Medical services (hospitals, clinics, dental, ambulance, screenings, treatment, rehabilitation, accommodation, meals etc.)
Traditional and complementary treatments (Chinese medicine, Malay traditional healing, Indian traditional medicine etc.)
Allied health services (nutritionists, psychologists, physiotherapists etc.)

What services are exempted from SST?

Services provided to Malaysian citizens
Services from government hospitals and university hospitals
Services in designated zones (Langkawi, Labuan, Tioman, Pangkor) and special economic zones
Sales of medical devices such as crutches, hearing aids, ventilators

SST Registration Threshold and Latest Tax Rate

If you provide private healthcare, traditional & complementary medicine, or allied health services — to both citizens and non-citizens — and your total taxable revenue exceeds RM1,500,000 in the past 12 months, you must register for SST.
SST Rate： 6% (Group I)
Once exceeds the registration threshold, you must register for SST in the following month, and begin charging SST in the month after that.

When does SST apply?

SST is generally triggered at the earlier of these two events: When you issue the invoice, or When you receive payment.

Special rules :
1. If no payment is received after 12 months → SST must still be accounted for at the 12-month point
2. If approved by Customs, you may opt to account based on invoice date

Other situations that are also subject to SST:

Private clinics/hospitals providing medical care to company employees
Contract doctors providing services within a private healthcare facility or hospital
Healthcare professionals offering services at the patient’s home
Outsourced or collaborative services between healthcare facilities (for non-citizen patients)
Imported healthcare services, such as foreign medical opinions (considered taxable imported services)
Licensed maternity Centre providing services

Accounting & Tax Reminders

If you’re a registered SST person, and you provide taxable services to non-citizens, you must:

Issue tax invoices and keep accurate records
Collect 6% SST from the customer
Calculate SST based on the actual amount charged for the service
Submit SST returns (SST-02) on time
Maintain records for at least 7 years

Frequently Asked Questions (FAQ)

1. Is plastic surgery for non-citizens at private aesthetic centre taxable?

Yes. Plastic procedures and consultations provided to non-citizens are subject to 6% SST.

2. How is SST handled when collecting deposits?

Case 1 :
If the deposit forms part of the payment for services — SST is applicable.

Case 2 :
If the deposit is not linked to any service fee (e.g. a refundable security deposit) — SST is not applicable.

3. Do all services provided to non-citizens attract SST?

Yes, unless specifically exempt (e.g. government/university hospitals, or designated zones)

4. If a Malaysian doctor provides services overseas to a foreign patient, is SST applicable?

No. If the service is provided outside Malaysia, it is not subject to Malaysian SST.

5. I’m a registered traditional medicine practitioner running my own shop. Do I need to register for SST?

Yes, if your revenue exceeds RM1.5 million, you must register and charge SST on services to non-citizens.

6. I’m not a registered practitioner, but I employ one. Do I need to register?

Yes. As long as your business provides traditional or complementary health services and exceeds RM1.5 million revenue, you must register and charge SST to non-citizens.

**Last Updated on 25.6.2025

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