Important Notice: Adjustment of Sales and Service Tax (Sst) 2025 and Tuition Fee Payment Procedures
Notice
Ref : L-IIE-TRC-N25036
Date : 1 July 2025
To：All International Students
IMPORTANT NOTICE: ADJUSTMENT OF SALES AND SERVICE TAX (SST) 2025 AND TUITION FEE PAYMENT PROCEDURES
Pursuant to the directive issued by the Ministry of Finance Malaysia on 9 June 2025, the scope of the Sales and Service Tax (SST) shall be extended to the education sector effective 1 July 2025. To ensure all international students fully comprehend the implications of this policy adjustment on fee payments and to facilitate your academic arrangements, the implementation details and institutional support measures are hereby notified as follows:
1. Key Policy Adjustments
Commencing 1 July 2025, a 6% service tax shall be levied on all higher education fees (covering undergraduate, master’s and doctoral programmes) for non-Malaysian students. Taxable items include:
- Tuition Fees
- Registration Fees
- Admission Fees
- Co-curricular Fees
- Charges for Books and Learning Materials
- Charges for Facilities/Teaching Aids
- Any other education-related charges or fees imposed by the institution.
Concurrently, the visa processing fee charged by Education Malaysia Global Services (EMGS) shall be adjusted from 1 July 2025 to align with the revised fee structure under the new tax regime. Please note this adjustment is an independent action by EMGS and is unrelated to the institution.
Clarification: NEUC has not increased any self-administered fees (including those listed above). The service tax is a mandatory levy imposed by the Malaysian government, for which the institution acts solely as a collecting and remitting agent.
2. Transitional Support
To mitigate the impact of this policy change, the following special arrangements have been implemented:
i. Fee Concession
- New Students (registering between July-December 2025): The 6% service tax incurred in 2025 shall be fully borne by the institution (i.e., your payment amount remains at the pre-tax rate, excluding EMGS’s adjusted fees). All fees payable from 1 January 2026 onward shall be subject to post-tax rates.
- Current Students: Payments settled on or before 31 August 2025 shall be exempt from the 6% service tax for 2025 (paying only the original fees).
Subsequent payments shall incur post-tax rates. However, the visa renewal fee will be subject to additional charges based on the revised rates set by EMGS effective from 1 July 2025. - Advance Payment Provision: Students may prepay tuition fees for the 2026 academic year or settle full programme fees to benefit from current tax exemptions. However, should Malaysian tax authorities retrospectively impose service tax on advance payments made after 31 August 2025 for academic services rendered in future cycles (e.g., 2026 academic year), the institution shall notify affected students to arrange supplementary payments, with full administrative assistance provided.
ii. Flexible Admission
- Prospective students pending English proficiency results may utilise NEUC’s Conditional Offer Letter to prepay 2025 tuition fees at the pre-tax rate. Should enrolment be cancelled due to unmet language requirements, all fees except application and EMGS charges shall be refunded in full.
iii. Expedited Document Processing
- Applicants with Research Proposals under revision may obtain a Provisional Offer Letter to initiate EMGS visa applications. Note: Final admission remains contingent upon submitting a research proposal meeting academic standards as advised by supervisors.
All applicants and current students are urged to monitor application progress and payment deadlines closely to capitalise on the pre-SST adjustment concession period.
Reiterating: This fee adjustment arises solely from governmental tax policy changes; NEUC’s underlying fee structure remains unaltered.
Should you have any questions or require further assistance, please do not hesitate to contact us at iie@newera.edu.my.
Thank you for your attention and cooperation.
Institute of International Education (IIE)
New Era University College
Attachment: MINISTRY OF FINANCE PRESS RELEASE OF TARGETED REVISION OF SALES TAX RATE AND EXPANSION OF SERVICE TAX SCOPE EFFECTIVE 1 JULY 2025