Effective March 1, 2024, Malaysia's SST rate will rise from 6% to 8%. This affects insurance periods starting on or after this date, with earlier periods retaining the 6% rate. Payments made by February 28, 2024, will benefit from the 6%.
What are the new changes to the Sales & Service Tax (ST) rate and when do they take effect?
From March 1, 2024, the Sales & Service Tax (SST) rate will increase from 6% to 8%. This change is pursuant to the latest guidelines issued by the Royal Malaysian Customs Department (RMCD).
How will the new SST rate affect my insurance payments?
The applicable SST rate will be based on the date of your insurance period.
If your insurance period is before March 1, 2024, a 6% SST rate applies. For insurance periods starting on or after March 1, 2024, the 8% rate will be in effect. For services spanning both periods, the ST will be proportionately applied.
What if I have made a payment before the rate change?
Payments received before March 1, 2024, for services provided on or after that date will still be subject to the 6% rate. The ST at 6% will apply to the amount paid or the portion of services provided before March 1, 2024—whichever is higher.
Are there any exceptions to the new SST rate?
Yes, there is an exception for payments received by the insurance company or takaful operator before March 1, 2024, for services provided on or after that date. Oyen's cut-off date is on 28 February 2024 so that we can have the premiums be made to our principals timely on 29 February 2024 for the 6% SST to remain.
If you are purchasing a new annual plan for your new pets or renewing your pet's annual policies, ensuring that you make these payments by 28 February 2024 will allow you to enjoy 6% SST for upcoming year's policy period.
For monthly policyholders, for your auto-debit transactions happening from 1 March 2024 onwards, your SST rate will be shifted to 8% from 6% as per the guidelines by RMCD.
If you have any overdue payments from prior months that have not been paid, do ensure that they can be charged by 28 February 2024. Any overdue payments that is only successfully charged to Oyen on and after 29 February 2024 will be subjected to 8% SST.
If you have any further questions or concerns, please don't hesitate to reach out to our customer service team for more clarification. Thank you for entrusting us with the care of your beloved pets.