Malaysia imposes tax on private education

GD&TĐ - From July 1, 2025, Malaysia will apply a 6% tax on private education services.

The new regulation applies to private kindergartens, primary schools, colleges, universities and language centres if they serve students who are not Malaysian nationals.

This is part of the Malaysian government’s amendment to the Sales and Services Tax (SST) system. Under the new regulations, private institutions with tuition fees exceeding RM60,000 per year are required to register for the tax. Highereducation institutions and language centres are required to register regardless of their revenue if they have international students. Malaysian students are exempted from this tax.

The Malaysian Finance Ministry said the policy aims to “strengthen the country’s fiscal position by broadening the tax base without imposing additional burdens on citizens.” However, the policy could affect the target of attracting 250,000 international students by 2025.

The British Council has warned that the SST could reduce Malaysia’s attractiveness as a study destination, especially for students from developing countries who are cost-sensitive. UK-led transnational education (TNE) programmes in Malaysia could be affected.

The British Council recommends that UK educational institutions should discuss carefully with local partners and consult tax experts to assess the impact and make appropriate adjustments.

According to The Economic Times

Source: https://giaoducthoidai.vn/malaysia-ap-thue-voi-giao-duc-tu-nhan-post737916.html