Dear customer,

We would like to inform you that, following the recent gazettement of the Service Tax Regulations, the scope of Service Tax in Malaysia will be expanded to include selected fee-based financial services in phases, starting from 1 July 2025.

In line with this regulatory update, alrajhi bank Malaysia will implement an 8% Service Tax on applicable financial services, in accordance with the relevant laws and regulations, including the Guidelines on Financial Services issued by the Royal Malaysian Customs Department (RMCD).

We are committed to supporting this regulatory change and will take all necessary measures to ensure a smooth and transparent implementation for our customers.

For more details on the expanded scope of Service Tax, please refer to the official RMCD guidelines: SST Guidelines for Financial Services.

Thank you for banking with us.

alrajhi bank Malaysia

Frequently Asked Questions (FAQ) – SST Expansion for Banking Services

Effective Date: 1 July 2025

1.       What is the SST expansion about?

The Malaysian government has expanded the scope of the Service Tax (SST) to include selected fee or commission-based financial services, effective 1 July 2025, under the Ekonomi MADANI framework.

2.      Which banking services are affected?

Generally, selected fee-based services will be subject to SST. You may refer to Appendix A of the Guide on Financial Services for more information: https://mysst.customs.gov.my/GUIDE ON FINANCIAL SERVICES.pdf

3.      Will all banking services be taxed?

At the time of writing, only fee- or commission-based services are affected. Core banking services such as savings accounts, current accounts, and basic loan disbursements remain exempt from SST.

4.      How will this affect customers?

Customers may see adjustments in fees for certain services. The bank will ensure transparency and provide advance notice of any changes.

5.      Where can I find more information?

You can refer to the following official resources:

• Ministry of Finance Press Release
• MySST Financial Services FAQ