Latest news with #AIBIM
Malay Mail
9 hours ago
- Business
- Malay Mail
Malaysia's banks to impose 8pc service tax on financial services starting July 1
KUALA LUMPUR, June 25 — Member banks of Malaysia's banking associations will begin implementing the service tax on relevant financial services in phases from July 1, 2025, in accordance with the guidelines issued by the Royal Malaysian Customs Department. This follows the recent gazettement of the service tax legislations concerning the expansion of service tax scope, said the Association of Banks in Malaysia (ABM), the Association of Islamic Banking and Financial Institutions Malaysia (AIBIM), and the Malaysian Investment Banking Association (MIBA). The associations said the imposition of service tax on financial services would be in line with the legislation and relevant guidelines gazetted or issued by the Ministry of Finance and the Customs Department. 'Service tax will be imposed at a rate of eight per cent on fee- and commission-based financial services. 'We assure banking customers that several exemptions and exclusions have been granted — for example, basic banking services for the public, including current and savings account-related charges, will remain exempt from service tax for both conventional and Islamic banking services,' they added. For further details, ABM, AIBIM and MIBA advise the public to refer to communications from their respective banks, which will be published via the banks' official channels. — Bernama
The Star
9 hours ago
- Business
- The Star
Banks to begin charging service tax on financial service from July 1 under expanded scope
RHB Research said that in 1Q25, some banks reported key financial metrics that were trailing 2025 guidance. KUALA LUMPUR: Member banks of Malaysia's banking associations will begin implementing the service tax on relevant financial services in phases from July 1, 2025, in accordance with the guidelines issued by the Royal Malaysian Customs Department. This follows the recent gazettment of the service tax legislations concerning the expansion of service tax scope, said the Association of Banks in Malaysia (ABM), the Association of Islamic Banking and Financial Institutions Malaysia (AIBIM), and the Malaysian Investment Banking Association (MIBA). The associations said the imposition of service tax on financial services would be in line with the legislation and relevant guidelines gazetted or issued by the Ministry of Finance and the Customs Department. "Service tax will be imposed at a rate of eight per cent on fee- and commission-based financial services. "We assure banking customers that several exemptions and exclusions have been granted - for example, basic banking services for the public, including current and savings account-related charges, will remain exempt from service tax for both conventional and Islamic banking services,' they added. For further details, ABM, AIBIM and MIBA advise the public to refer to communications from their respective banks, which will be published via the banks' official channels. - Bernama
Malay Mail
11 hours ago
- Business
- Malay Mail
Banks assure public of exemptions for current, savings accounts as service tax begins on financial services from July 1
KUALA LUMPUR, June 25 — Basic banking services such as current and savings account-related charges will remain exempt from the upcoming service tax on financial services, the country's main banking associations said today. The Association of Banks in Malaysia (ABM), Association of Islamic Banking and Financial Institutions Malaysia (AIBIM), and Malaysian Investment Banking Association (MIBA) clarified this when announcing that banks will begin charging the tax in phases starting July. The service tax, set at 8 per cent, will apply to fee- and commission-based financial services in line with new legislation and guidelines issued by the Ministry of Finance and the Royal Malaysian Customs Department. The move follows the gazettement of expanded service tax laws that widen the tax scope to include more financial services. The banking associations have urged customers to refer to official communications from their respective banks for specific details. They also gave assurance that the phased implementation will follow the Customs Department's guidelines to minimise disruption to customers.
