FAQ: Sales & Service Tax 2025
Education Service Tax for Non-Malaysian Citizens (USM International Student)
- SST, or Sales and Service Tax, is a tax levied by the Malaysian government on specific goods and services.
- As annouced in the Government Gazette on 9th June 2025, a 6% service tax will be imposed on higher education services effective 1st July 2025.
- Universiti Sains Malaysia (USM) will impose a 6% service tax on all tuition and related non-tuition fees effective 1st September 2025 (Academic Session 2025/2026).
Who is impacted?
Student
- International student (Undergraduate & Postgraduate)
- Enrolled at Universiti Sains Malaysia
Service Subjected to 6% Service Tax
International student (Undergraduate & Postgraduate
- Tuition fees
- ERegistration fees
- Welfare & facility fees
- Any other charges related to education services
Most Frequently Asked Questions
Answer:
Yes. All new and existing non-Malaysian students will be required to pay service tax on eligible fees charged from the effective date onward.
Answer:
Service tax will be charged on the net tuition fee amount.
Answer:
- If you add a unit, the tuition fee including the 6% service tax for that unit will be added to your total fees.
- If you drop a unit, the tuition fee and the 6% service tax for that unit will be deducted from your total fees.
Answer:
Billing for Semester I, 2025/2026 will begin to be issued from Auguist onward while the University upgrades its system for SST compliance. The initial bill will not include the service tax. Once the University's SST compliant system is activated, s separate tax bill will be issued.
Answer:
Your tuition fees and the service tax will be billed to your sponsor, who is responsible for the payment. However, if your sponsor does not agree to cover the service tax, you will be required to bear the cost yourself.
Answer:
Service tax is a government imposed tax that USM collects from students on behalf of the Malaysian government. If you are eligible for a refund, it will be processed in accordance with the University's standard refund policy, and the service tax will be managed in line with the applicable tax regulations.
- For more information: https://bursary.usm.my
- For any inquiries, please contact: Student Finance Section, Bursary USM
- To download the PDF document on FAQ Sales and Service Tax 2025, visit USM Bursary