New Service Tax Rate effective 1st March 2024
Pursuant to the 2024 Budget presented by the Finance Minister on 13 October 2023, the Service Tax (ST) rate will be increased from 6% to 8%, effective 1 March 2024 (“Effective Date”). Pending the publication of the gazette order and further information from the relevant authorities, 8% ST will be applicable for:
All policies (new and renewal) transacted on or after 1 March 2024 with inception/renewal dates on or after 1 March 2024; and
The current 6% policy premium rate remains until 29 February 2024 which includes policies fully paid in advance before 1 March 2024 for coverage spanning across the Effective Date.
The Company reserves the right to collect the Service Tax due on the policy premium from the Effective Date and any other period stipulated and legislated by the Government of Malaysia.