What you need to know about the Service Tax (“ST”) expansion

1. Expansion of Service Tax under Financial Services

Starting 1 October 2025, an 8% Service Tax (ST) will apply to financial services, including but not limited to fees, commissions, or similar payments, in accordance with the Service Tax (Amendment) Regulations 2025, dated 9 June 2025.  For further details, please refer to Service Tax (Amendment) Regulations 2025.

For Individual Policyholders 

Generally, ST will not be charged on your insurance policy with us. Your premium payable and risk coverage remains unchanged. 

However, some service-related fees may be subject to ST, depending on the nature of the service. In line with the Royal Malaysian Customs Department (RMCD) guidelines, punitive fees (e.g. late payment charges) are not subject to ST, while transactional or administrative fees may be subject to ST where applicable. These are not part of your premium but may be applicable on certain taxable service provided by us.

For Business Policyholders 

If your policy is already subject to ST, this will remain unchanged. 

2. 6% ST on Healthcare Services for Non-Malaysian Citizens 

Starting 1 July 2025, a 6% ST applies to private healthcare services provided to non-Malaysian citizens. This may affect medical claims for non-Malaysian citizens, as your medical bills may be charged with an additional 6% ST. 

The eligibility of your medical claims will continue to be assessed based on the existing terms of your policy including any applicable 6% ST, until further notice.

In cases where a service or treatment is not eligible under your policy terms, we will not cover the cost, including any ST charged. Please refer to our corporate website for more information on this i.e. Services & Claims > Claims FAQ > Non-claimable items. 

If you have any questions, our customer service team is here to help. 

Thank you for your continued trust and support.