Archive · 24 Jun 2025
Malaysia to Tax International Students' Private Education
Malaysia is adding a 6% tax on private schools for students from other countries, starting July 1, 2025.
This new tax includes all types of schools like preschools, universities, and language centers, but not for Malaysian students.
The government says it will help raise money.
However, some people worry this tax might make Malaysia less attractive to international students, potentially hurting the country's goal of increasing the number of international students by 2025.
Malaysia will impose a 6% service tax on private education for international students starting July 1, 2025.
The tax applies to preschools, schools, universities, and language centers.
The tax is part of Malaysia's revised Sales and Service Tax (SST) framework.
Private institutions with annual tuition fees exceeding RM60,000 must register for SST.
Stakeholders fear the tax could impact Malaysia's goal of enrolling 250,000 international students by 2025.
- Who
- The Malaysian Ministry of Finance announced the tax; it impacts international students.
- What
- Malaysia is implementing a 6% service tax on private education for international students.
- When
- Starting July 1, 2025.
- Where
- Malaysia
- Why
- The policy is intended to increase revenue and broaden the tax base.
Government Stance
Stakeholders' Concerns
Impact on student enrollment
Government Stance
Tax revenue will increase and broaden tax base.
Stakeholders' Concerns
Impact enrolments in UK transnational education programs and affect Malaysia’s attractiveness as a study destination, especially amongst students from developing countries who can be price sensitive.
- Tax Rate
- 6%
- Effective Date
- July 1, 2025
- Target
- International students in private education
- Exemptions
- Malaysian citizens
- Registration Threshold
- Private institutions with fees > RM60,000 annually
- Goal
- Enrolling 250,000 international students by 2025