Non-citizens pay 6% service tax on private healthcare in Malaysia

How the healthcare service tax works

Private healthcare, traditional and complementary medicine and allied health services in Malaysia became taxable at 6% on June 16, 2025, per the Royal Malaysian Customs Department guide. Providers cross into the tax net once their taxable service value hits RM1.5 million over any 12-month period.

The tax falls due when the patient pays. For imported services, it triggers on payment or invoice issuance, whichever comes first. Government hospitals, several university-linked specialist centres and facilities in designated zones including Langkawi, Labuan, Tioman and Pangkor sit outside the scope.

In May 2026, the Ministry of Finance said medical tourism volumes have held up under the SST and the government has carved out exemptions where it deemed them necessary.

Who pays and who doesn't

Malaysian citizens are exempt from the 6% charge on private healthcare, traditional medicine and allied health bills. Everyone else using taxable private healthcare in Malaysia, foreign tourists, expats and digital nomads, pays the tax at billing.

The carve-out is citizenship-based, not residency-based. A long-term MM2H holder or a remote worker on a social visit pass still gets charged unless the specific treatment or facility falls under a separate exemption.

Government facilities remain tax-free for all patients, citizen or not. Care delivered in the designated island and special zones also escapes the tax regardless of who's paying.

What to check before treatment

Confirm the tax status with the hospital or clinic before booking a procedure. Providers, not patients, handle registration and collection, so the line item should appear on the bill if it applies.

A few practical points worth verifying:

• Whether the specific clinic is SST-registered (smaller providers under the RM1.5 million threshold may not charge it)
• Whether the treatment falls under traditional, complementary or allied health categories, which are all in scope
• Whether the facility sits in a designated area such as Langkawi or Labuan, where the tax doesn't apply
• Whether a university-linked specialist centre is on the exempt list

Insurance reimbursement policies on the SST line vary by insurer, so check the policy wording before assuming coverage.

Read our full Malaysia guide for the complete picture.