Service Tax is an indirect tax imposed by the Government on certain financial services, based on the scope defined by the Royal Malaysian Customs Department (RMCD) and is collected by financial institutions such as Bank Rakyat on behalf of the Government.

Starting 1 July 2025, the Ministry of Finance and the Royal Malaysian Customs Department (RMCD) will expand the scope of Service Tax in a phased approach to include more financial services, as outlined in RMCD’s Guide on Financial Services issued on 9 June 2025.

Bank Rakyat will apply Service Tax at prevailing tax rate on applicable fees and charges for financial services, in accordance with RMCD regulations. Exempt services will remain unaffected.

The current tax rate is 8%. It applies to most taxable services, including consultancy, professional and management services; financial services; rental and leasing of non- residential properties; non-residential construction services; entertainment and certain healthcare and education services for non-citizens.

For further details, please refer to the MySST portal the official website of the RMCD https://mysst.customs.gov.my/ or visit our website at https://www.bankrakyat.com.my/.

Starting 1 July 2025, an 8% Service Tax will be applied to fee and commission-based financial services listed in the Guide on Financial Services, unless they are specifically exempted.

Bank Rakyat will implement the Service Tax in phases, beginning 1 July 2025, in line with RMCD legislation and guidelines, as follows:

We will inform you of the specific taxable fees and charges in due course FAQs about Service Tax will be available on our website at https://www.bankrakyat.com.my/.

For more details, please visit the MySST portal at https://mysst.customs.gov.my/.

Bank Rakyat is fully committed to adhering to all Service Tax requirements and will ensure customers are promptly informed of any changes, including new taxable services, updated rates or applicable exemptions.

The scope of Service Tax is being progressively updated by the Ministry of Finance and RMCD, which may result in more financial services, fees and charges becoming taxable under the latest regulations.

Customers are encouraged to regularly check for updates via our official website at https://www.bankrakyat.com.my/ and RMCD’s MySST portal at https://mysst.customs.gov.my/ to stay informed on how these changes may affect your banking services.

Examples include:-

1. Financial services provided to the Federal Government and State Governments only.
2. Financial services relate to a subject matter, goods or land situated outside Malaysia or related to the export of goods.
3. Fees or charges related to the operation of savings accounts, current accounts or similar accounts ("CASA exemption"). Basic banking services include:
   1. deposit, withdrawal, payment or fund transfer;
   2. issuance of debit card;
   3. basic over-the-counter transactions;
   4. basic transactions using an Automatied Teller Machine (ATM); or
   5. printing of account statements.
4. Wakalah fee associated with Islamic financial services, where the fee is an integral part of the Islamic financing.

If you use a taxable product or service from Bank Rakyat, the 8% Service Tax will be included in the price you pay. This tax is charged once per service and not at multiple stages of the service process.

For services that involve fees or commissions, you may notice a slight increase in cost due to the added Service Tax. However, services that are exempted under the current Service Tax regulations will remain unaffected.

Bank Rakyat is committed to transparency and will continue to update customers with clear information on which services are subject to Service Tax.

For the latest updates, please visit our website at https://www.bankrakyat.com.my/ or RMCD’s MySST portal at https://mysst.customs.gov.my/.