Please be informed that Service Tax will be implemented by the Government of Malaysia with effect from 1 September 2018 at a rate of six (6) per centum.
For Life Insurance
All individual life and medical insurance is not a taxable service and is not subject to Service Tax.
However, the provision of all types of insurance contract to a business organisation is subject to six (6) percent of Service Tax (i.e. Group policies, keyman policies and policies assigned to a business organisation).
For General Insurance
Tokio Marine Insurans (Malaysia) Berhad reserves the right to collect from you an amount equivalent to the Service Tax payable on the applicable premium for the policy period, or in the event that the policy period commences before but expires after 1 September 2018, to collect from you an amount equivalent to the Service Tax payable on the applicable premium calculated from 1 September 2018 on a pro-rated basis.
Your obligation to pay Service Tax shall form part of the Terms and Conditions in your insurance policy.
The laws governing Service Tax are as per the Service Tax Act, 2018 and all Regulations passed by the Government of Malaysia from time to time.
For more information on Service Tax, please refer to our FAQ.
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