Following the joint media statement by the Association of Banks in Malaysia (“ABM”), Association of Islamic Banking and Financial Institutions Malaysia (“AIBIM”), and Malaysian Investment Banking Association (“MIBA”) on June 25, 2025, HSBC Bank Malaysia Berhad and HSBC Amanah Malaysia Berhad (“HSBC” or “the Bank”) will be implementing an 8% Service Tax (referred to as “SST”) on applicable fees and commission-based financial services.
As per the Royal Malaysian Customs Department’s (RMCD) Service Tax Policy No 1/2025 (Amendment No 2), SST will be rolled out in two phases:
Phase 1 – Effective July 1, 2025: SST is imposed on Treasury Services and Corporate Banking Advisory Services related fees as listed in Appendix A of the Service Tax Policy No 1/2025 (Amendment No 2) (“Policy”).
Phase 2 – Effective October 1, 2025: SST will be imposed on all other financial services charged for fees or commissions not listed in Appendix A of the Policy.
There are exclusions and exemptions to the scope of the SST, which includes among others, fees or commission related to basic banking services (eg. current and savings accounts for both conventional and Islamic banking services etc) which will not be subjected to service tax. Our Tariff and Charges have been updated to reflect the fees and charges that are taxable.
To find out more information on SST you may refer to https://mysst.customs.gov.my/.
To find out more on how SST expansion impact HSBC services fees and charges, as well as a comprehensive list of exclusions, you may refer to the 'Sales and Service Tax Information' section of our Download Center.
If you have further questions, feel free to contact your dedicated Relationship Manager.
We appreciate your understanding and continued support.