TaxSavvyMY

Private healthcare and service tax

Do private clinics charge service tax now?

The situation

From 1 July 2025, private healthcare services for non-Malaysian patients are taxable at 6%; services to Malaysian citizens are at 0%.

The law

  • Service tax scope expansion from 1 July 2025 (rental, construction, financial, healthcare, education): New taxable services with own thresholds: rental RM1 million, construction RM1.5 million, education nil
  • Service Tax (Rate of Tax) Order, as amended 2025: Service tax at 8%; 6% for food and beverage, telecoms, parking, logistics, construction, education and others

What it means for you

Clinics must identify patient nationality to apply the right rate. Registration applies above RM1.5 million in taxable value. Keep patient records that support the split.

What to do

  1. Add nationality check at registration.
  2. Compute non-citizen revenue.
  3. Register if above threshold.
  4. Charge 6% where required.

We can do this for youService tax registration and SST-02 returns: MYR 800

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