Sales and Services Tax 

Sales and Services Tax

Malaysia Sales and Services Tax (SST)

The Government of Malaysia has issued amendments to the SST Regulation effective from 1 March 2024. The changes are as follows:

• Increase in SST rate from 6% to 8% for selected prescribed taxable services;
• Inclusion of new taxable services such as Maintenance, Repair and Overhaul; and
• Creation of a new taxable services, Group J - Logistics Services

The following are the SST registration numbers of Malaysia Airlines Berhad (“MAB”) and its related entities:  

Note:
a. Group I - Air ticket

b. Group J - Logistics

c. Group J - Custom Agent

d. Others

Tax on flight tickets

Will I be charged Malaysian SST when I buy domestic or international air tickets?

 

How is SST represented in the ticket?

SST is represented in the Tax line of the ticket with a tax code stated as ‘D8’.

 

Is Passenger Service Charge (PSC) or airport tax subject to SST?

No, PSC will not be subjected to SST.

 

Tax Invoice

Malaysia Airlines will not be issuing a Tax Invoice to passengers as no input tax credits may be claimed. The e-ticket will be the commercial invoice under the SST regime.

 

Service Tax Refund

Refund of SST is subject to terms and conditions of the flight ticket.

The above is updated on the basis that the service tax law implementation on 1 March 2024. The information above may be subject to change arising from updated guidance issued by the Government of Malaysia from time to time.  

 

For further information: Contact Malaysia Airlines call centre at 1300 88 3000.

• Visit the Royal Malaysian Customs Department’s website here .

International Passenger Service Charge Exemption for Overseas Filipino Workers (OFW) 

Overseas Filipino Workers (OFW) who are exempted from paying the International Passenger Service Charge (LI) may purchase their tickets from any Malaysia Airlines ticket offices worldwide or from any travel agency. The proof of exemption such as a valid Overseas Employment Certificate (OEC), Balik Manggawa (BM) document or other acceptable exemption documents must be presented upon purchase of the ticket and surrendered by the departing OFW at the Malaysia Airlines check-in-counter at Ninoy Aquino International Airport in Manila. If the passenger is unable to show this exemption, the International Passenger Service Charge (IPSC) fee will be collected from the passenger. 

If you are an OFW who bought your ticket on the Malaysia Airlines website but are unable to claim the exemptions above: you can process the refund of the International Passenger Service Charge through the Manila International Airport Authority with a valid Overseas Employment Certificate (OEC) or other accepted exemption documents.