TraTax | New SST Revisions Impacting Malaysia’s Private Education Sector

A recent TraTax webinar shed light on the new regulations, addressing concerns around mixed student cohorts, managing tiered fees, and best practices for invoicing. Private educators are encouraged to act promptly: identify taxable services, register for SST if required, update invoicing systems, and clearly communicate any fee adjustments. With a compliance grace period until 31 December 2025, institutions must prepare now to avoid potential financial or reputational risks. The SST changes are targeted—not blanket—but if your institution serves foreign students or offers premium programmes, these updates could have a significant impact.

Effective 1 July 2025, a 6% SST will apply to private education services (excluding specific exemptions), including courses with annual fees exceeding RM60,000 per student and services provided to non-Malaysian students. Exemptions will continue for services offered to Malaysian citizens under the fee threshold and institutions with annual revenue below RM500,000. The changes affect a wide range of providers, from private schools and international campuses to training academies and enrichment centres. Now is the time to assess your exposure and ensure readiness.