Malaysia reviews service tax rules for elderly care providers

The Finance Ministry, together with the Women, Family and Community Development Ministry, announced a review of the Sales and Service Tax applied to elderly care services overseen by the Welfare Department. The assessment will consider the nature of services, distinguishing between basic and premium care, to create a more nuanced tax framework. This initiative follows worries that the existing tax burden is inflating costs for older Malaysians, especially as the nation’s elderly population grows.

Since September 1, 2018, such services have been taxed under the Service Tax Regulations with a registration threshold of RM500,000. The ministries said they will gather input from relevant stakeholders and weigh implementation issues before publishing any revised rules.