Joint media statement by The Association of Banks in Malaysia (ABM), Association of Islamic Banking and Financial Institutions Malaysia (AIBIM) and Malaysian Investment Banking Association (MIBA)

Kuala Lumpur, Wednesday, 25 June 2025 – Following the recent gazettement of the service tax legislations in relation to the expansion of service tax scope, The Association of Banks in Malaysia (ABM), Association of Islamic Banking and Financial Institutions Malaysia (AIBIM) and Malaysian Investment Banking Association (MIBA) wish to inform the public that member banks of the said associations will commence charging of service tax on the relevant financial services in a phased approach commencing on 1 July 2025 in accordance with the Guidelines on Financial Services issued by the Royal Malaysian Customs Department.

The imposition of service tax on financial services will be in accordance with the legislation and relevant guidelines gazetted/issued by the Ministry of Finance and the Royal Malaysian Customs Department.

Service tax will be imposed at a rate of 8% on fee- and commission-based financial services. We wish to assure banking customers that several exemptions and exclusions have been granted, such as basic banking services for the rakyat, including current and savings account-related charges, which will remain not subjected to service tax for both conventional and Islamic banking services.

ABM, AIBIM and MIBA advise the public to look out for communications from their respective banks that will be published via the banks’ official channels for further details.