Sales and Service Tax (SST)
English version | Chinese version
As required by Malaysian law effective 1 July 2025, a 6% Service Tax will be applied to higher education services provided to non-Malaysian citizens, in accordance with the Malaysian Budget 2025 and Ministerial Orders issued on 9 June 2025.
What is SST and why does it matter?
1. What is SST and why is it being applied to tuition fees?
SST stands for Sales and Service Tax, a tax imposed by the Malaysian government on certain goods and services.
Effective 1 July 2025, a 6% Service Tax will be applied to higher education services provided to non-Malaysian citizens, in accordance with the Malaysian Budget 2025 and Ministerial Orders issued on 9 June 2025.
This tax is mandatory and collected by UNM on behalf of the Government of Malaysia.
2. Who is affected by the 6% SST?
The 6% SST applies only to non-Malaysian citizens, including international students, foreign nationals and permanent residents (with MyPR) studying at UNM.
Malaysian citizens (with MyKad) are not subject to this tax.
3. Will SST be applied to payments made before 1 July 2025?
No. If your tuition and other fees are fully paid before 1 July 2025, SST will not apply, even if the semester begins after that date. Any new or outstanding payments made on or after 1 July 2025 will be subject to 6% SST.
Please note, the SST will be based on the clearance date to university bank account.
Example:
| Shortage tuition fees | RM100 |
|---|
| Initiated payment date |
27/6/2025 |
| Clearance payment date |
1/7/2025 |
As the payment RM100.00 is cleared on 1 July 2025, the payment will be imposed for 6% SST. Thus, studentsare required to make additional payment for SST.
Calculation: RM100 x 6% SST = RM6.00
4. Will SST rates change during my studies?
If SST rates are changed by the Malaysian Government in the future, UNM will comply with the new rate and update students accordingly. This means your fees may increase or decrease depending on any revised rate.
5. Can I claim SST as a tax deduction (e.g. parents or self-employed students)?
If you are a parent who is a Malaysian tax resident, the children’s education relief is a fixed amount and isn’t linked to how much you actually spend. If you are a self-employed student, you may be able to claim personal relief based on your actual education expenses, up to RM5,000 a year. Tax rules can change, so for the latest information we suggest checking with a qualified tax professional or the Inland Revenue Board of Malaysia (LHDN).
Which fees will be taxed?
1. Which fees are subject to the 6% SST?
SST applies to most education-related services for non-Malaysian students, including:
- Tuition fees
- Application, enrolment, and registration fees
- Lab/material fees (where applicable)
- International student fees
- Student letters, transcripts, courier fees
- Reactivation fees and other academic-related charges
2. How does SST apply if I have a scholarship or fee waiver from UNM?
SST is calculated based on the net tuition fee, after deducting any scholarships or waivers received. This means you will be charged 6% SST on the net tuition fees amount, and any scholarship will be deducted before the tax is applied.
Example: Tuition Fee Billing with Partial Scholarship and Application Fee
Student A has enrolled into Course A and is billed the following:
| Description | Amount (RM) | 6% SST (RM) | Total (RM) |
|---|
| Application Fee |
400.00 |
24.00 |
424.00 |
|---|
| Tuition Fee – Course A |
30,000.00 |
1,500.00 |
31,500.00 |
|---|
| High Achiever Scholarship |
(5,000.00) |
- |
(5,000.00) |
|---|
| Total Payable by Student |
25,400.00 |
1,524.00 |
26,924.00 |
|---|
3. If I am in an inter-campus exchange programme, does SST apply?
If you are enrolled at UNM and paying fees to UNM, SST will apply to your fees if you are a non-Malaysian citizen. If your home campus (UK/China) is billing you, SST will not apply.
4. Are resit or repeat fees subject to SST?
Yes. Any academic-related fees including resits or repeating modules are subject to 6% SST.
5. Does SST apply to short courses, professional development or executive education?
Yes. If these are billed as education services to non-Malaysian citizens, SST applies.
6. Are discounts like the Early Bird Discount affected by SST?
Yes. The 6% SST is applied towards net tuition fee after relevant discounts.
Example: With 1.5% Early Bird Discount
Student A plans to pay both Autumn and Spring semester tuition in advance and qualifies for a 1.5% early bird discount.
| Description | Amount (RM) | 6% SST (RM) | Total (RM) |
|---|
| Full Tuition Fee |
60,000.00 |
3,546.00 |
63,546.00 |
|---|
| Early Bird Discount (1.5%) |
- 900.00 |
- |
-900.00 |
|---|
| Total Payable by Student |
59,100.00 |
3,546.00 |
62,646.00 |
|---|
You may also refer to our online Fee Calculator to estimate your total fees including SST.
7. If a partial payment was made before July 2025, will SST be applied towards outstanding semester fees?
6% SST will be calculated based on the net semester tuition fees after deducting applicable scholarships or discounts, and it will not be applied to any partial payments received before July 2025.
Example:
| Description | Amount (RM) | 6% SST (RM) | Total (RM) |
|---|
| Tuition Fee – Autumn |
30,000.00 |
1,800.00 |
31,800.00 |
|---|
| Payment Received Before July 2025 |
- 2,000.00 |
- |
- 2,000.00 |
|---|
| Total Payable by Student |
28,000.00 |
1,800.00 |
29,800.00 |
|---|
Which fees are exempt from SST?
1. Which fees are not subject to the 6% SST?
The following are exempt from SST:
- On-campus accommodation fees
- Refundable security deposits
- Visa processing fees
- Study trips (local/abroad) not billed as tuition
2. Are exchange students (e.g. from UK/China campus) subject to SST?
No, students under a formal exchange arrangement are not subject to SST, as they are not charged tuition fees by UNM. This is based on our present understanding of the regulations and may be updated if official requirements change.
3. Are there SST exemptions for certain groups (e.g. OKU/disabled students)?
Currently, there are no exemptions under Malaysian tax law for any student category. All non-Malaysian students are subject to SST.
4. Will SST affect my visa or immigration status?
No. SST is purely a financial/tax matter and has no impact on your student visa or immigration status.
5. I am a sponsored foreign student. Do I still need to pay the service tax?
If your tuition fees are fully covered by an external sponsor (such as a company or institution), the 6% SST will not be applied. Therefore, no SST will be charged to the sponsor.
6. I received 100% UNM-funded scholarships. Do I need to pay for 6% SST?
For 100% UNM-funded scholarships, student will not subject to SST under Malaysian tax law.
How do I calculate and pay SST?
1. How is SST calculated on tuition and application fees?
Example: Tuition Fee Billing with Application Fee
Student A has enrolled into Course A and is billed the following:
| Description | Amount (RM) | 6% SST (RM) | Total (RM) |
|---|
| Application Fee |
400.00 |
24.00 |
424.00 |
|---|
| Tuition Fee – Course A |
30,000.00 |
1,800.00 |
31,800.00 |
|---|
| Total Payable |
30,400.00 |
1,824.00 |
32,224.00 |
|---|
2. I haven’t received my fee statement. How do I know how much to pay?
You can check your student portal for billing details or contact the Finance Office at finance-office@nottingham.edu.my. Please ensure your email address in the student system is up to date.
3. How will SST affect instalment payments?
SST will be applied to each instalment. For example, if your instalment is RM5,000, an additional RM300 (6%) will be charged as SST. You can view instalment schedules on your student portal or reach out to Finance for clarification. If your instalment covers more than one type of service, some of which are not subject to SST, the calculation will be adjusted accordingly.
4. Can I pay the SST separately from my tuition fee?
No. SST is part of the total bill and must be paid together with tuition and related fees.
5. How does currency conversion affect SST calculations?
SST is calculated in Malaysian Ringgit (MYR). For international payments, currency fluctuations may affect the final amount paid in your local currency. Please check with your bank or payment provider for the latest conversion rates.
6. Is SST refundable if I withdraw?
No. SST is a government tax and non-refundable under any circumstances. However, your tuition refund (if applicable) will follow UNM’s standard policy.
More Information and Help
Note: This FAQ is subject to updates based on government guidelines. UNM remains committed to transparency and regulatory compliance.