Changes in Service Tax Rate From Current Rate of 6% to 8% Effective 1 March 2024



Following the transitional rules for the proposed increase in service tax rate shared by The Royal Malaysian Customs Department, Berjaya Sompo Insurance Berhad (“BSIB”) would like to inform that an 8% service tax will be applied for all taxable general insurance policies where the insurance period commences on or after 1 March 2024 or where the insurance period spans across 1 March 2024 (calculated on a pro-rated basis).

For Example:

A policy with coverage period from 1 October 2023 to 30 September 2024 which span across 1 March 2024, the service tax rate will be levied as below:-

  • From 1 October 2023 to 29 February 2024 – Service Tax at 6%
  • From 1 March 2024 to 30 September 2024 – Service Tax at 8%

BSIB reserves the right to collect any undercharged service tax for policies processed before 1 March 2024 where the insurance period spans across 1 March 2024.

Policyholders are obligated to pay any applicable taxes including but not limited to service tax and stamp duty that are imposed by the Malaysian tax authorities in relation to their policies. Please contact us should you require further information.