Credit Card Service Tax Malaysia

Service tax of rm25 will be charged on each new primary and supplementary credit cards upon activation of the credit card. Effective 1 september 2018 rm25 service tax will be imposed on each principal and supplementary credit card as per the following. Out of that number 9 million cards are principal credit cards 1 1 million are supplementary cards with remaining being charge cards.

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Registration of taxable person.

Credit card service tax malaysia. At the moment there are at least 10 2 million credit cards and charge cards being used in malaysia. Finance minister lim guan eng through his powers under the service tax act 2018 announced the service tax amounting to rm25. Service tax of rm25 will be imposed on each principal and supplemantary cimb credit cards upon activation and annual renewal of the principal and supplementary credit card. The tax stood at rm50 for principal credit cards and rm25 for supplementary cards.

Find out more about service tax. Under the old service tax model a service tax of rm50 a year on each principal credit card and charge card and a service tax of rm25 a year on each supplementary card was implemented. A service tax of rm25 is imposed upon activation of new principal or supplementary cards and on the anniversary renewal date every year including on existing cards in issuance as at 1 september 2018 i e. Imposition of service tax 16.

Service tax shall be imposed on the date of issuance or renewal of the credit. Rate of tax the rate of service tax is 6 ad valorem for all taxable services except for the provision of charge or credit card services. For existing credit cardholders service tax of rm25 will be charged on the anniversary month of each of your primary and or supplementary credit cards. Rm25 00 will be imposed on each principal and supplementary credit card and charge card upon new card activation date including activation of temporary cvv and subsequently upon the anniversary of your card approval date.

In an order that was made just days before the revived sales and services tax sst regime kicked in on september 1 finance minister lim guan eng through his. The rate of service tax to be imposed is rm 25 per card per year or part thereof for the issuance or renewal of a principal or supplementary credit card or charge card. Back in 2010 an annual service tax was imposed on card holders which saw a drop in the number of cards in circulation. B new card approved from 1 september 2018 on the card activation date of each card.

Service tax for the provision of charge or credit card services is rm25 per year on each principal card or supplementary card. Kuala lumpur aug 30 a service tax of rm25 will be imposed on either new credit card users or those who renew their credit cards from september 1 onwards the finance minister has ordered. Service tax implementation effective 1 september 2018 service tax will be imposed on selected products and services only. Under sst 2 0 the rm25 charge will be applied to each credit or charge card regardless if it is a principal or supplementary card.

Principal card rm25 per card per year supplementary card rm25 per card per year 3. A existing card approved before 1 september 2018 on the yearly renewal date of each card.