Sales & Service Tax (SST)

> Recruitment Representatives

Implementation of 6% Service Tax on Education Services for International Students

Following the announcement of the Malaysian Budget 2025 on 18 October 2024 and the subsequent issuance of Ministerial Orders on 9 June 2025, the scope of taxable services will be broadened effective 1 July 2025, encompassing higher education services.

As such, please be advised that from 5 December 2025, a 6% service tax (SST) will apply to fees for Putra Business School (PBS), as well as charges related to education services provided to non-Malaysian citizens.

Frequently Asked Questions

SST (Sales and Service Tax) is a tax imposed by the Malaysian government on specific goods and services. Under the SST 2.0 framework, a 6% SST will apply to higher education services for international students, effective 1 July 2025. Putra Business School (PBS) will begin applying this tax to relevant fees starting 8 December 2025. This tax is collected by and remitted to the Government of Malaysia.

The SST is set at 6%. Services subject to SST include:

Processing Fee
Tuition Fee
Admin Fee
Viva Fee
Extension Fee
Research Fee
Continuation Fee
Convocation Fee
Academic transcript & Courier charges
Student Senate letter request & Courier charges
Late Penalty charges
Any other charges or fees relating to education imposed by the university

Services exempted / not subject to SST:

Hotel or accommodation Fee
Transportation Fee
Security bond deposit
EMGS Fee
Alumni Fee

The above is inclusive of, but not restricted to, any items not mentioned above, depending on updates from Malaysian authorities.

This SST applies to non-Malaysian citizens to whom PBS provides education services. Malaysian citizens are exempted.

PBS will begin charging SST from 8^th December 2025 in line with regulatory requirements.

If your invoice was issued and fully paid before 8 December 2025, SST will not apply. Any outstanding invoices as of 8 December 2025 may be adjusted to include the 6% service tax.

As per Royal Malaysian Customs Department (Jabatan Kastam Diraja Malaysia) guidelines, SST is determined based on the payment date. Therefore, if you still have any outstanding amount not paid by 5 December 2025, a 6% SST will be incurred on the remaining balance when you make the payment.

Example:
If your invoice dated 1 September 2025 has an outstanding amount of RM4,700 and you make the payment on 10 December 2025, the RM4,700 will be subject to 6% SST.

You are required to pay a total of RM4,982.00.

No. The introduction of SST will not affect your visa, student pass, or immigration process. Please ensure timely payment of fees to maintain your student status.

Yes. All invoices issued on or after 5 December 2025 to international students will include 6% SST on tuition fee and related charges.

Yes. All new and continuing non-Malaysian students will be subject to service tax on eligible fees charged on or after the effective date.

If you add a subject, you will be billed tuition fee including service tax for the subject. Similarly, if you drop a subject, your fee statement will also be adjusted where the tuition fee and service tax for the dropped subject will be deducted from your balance.

You may visit the Royal Malaysian Customs Department website at https://www.customs.gov.my for official updates and public guidance.

For enquiries, please contact:
Admission Unit (Email: [email protected]),
International Office (IO) – (Email: [email protected]); or
Finance Department (Email: [email protected])