What Financial Services Are Now Taxable Under Malaysia’s SST? (And What Traders Need to Know)
Malaysia’s government has expanded the scope of its Sales and Service Tax (SST), and starting from March 2024, a broader list of financial services has become taxable.
For traders, fund managers, and anyone dealing in forex or investment-related services, this update is more than just headline news — it directly affects your profit margins, service fees, and operational costs.
Let’s break it down.
What Changed in SST for Financial Services?
Previously, SST mostly affected traditional banking services. Now, the scope includes:
Brokerage fees
Currency exchange services
Fund management
Financial advisory
Digital investment platforms
Forex copytrading or PAMM services, if charged with service fees
If you’re a trader using third-party platforms, or you’re offering services like coaching, signals, or account management — you might be in the taxable category.
Why This Matters to Traders
Increased Service Costs
If you pay 6% SST on brokerage, fund management, or coaching fees, that cost eats into your trading profits.Compliance for Service Providers
If you’re offering signals, coaching, or fund management as a business, you may be required to register for SST and charge clients accordingly.Record-Keeping and Reporting
Traders who operate under a business entity (Sdn Bhd or Enterprise) must ensure proper invoicing and SST declarations. LHDN is watching.
Real Talk: What Should You Do?
✅ Check if your trading-related services are now taxable
✅ Update your pricing to factor in the SST cost
✅ Stay transparent with your clients about service fees
✅ Keep records clean — especially if you’re offering PAMM or Copytrade and earning fees
For Ajmal Idlan, as a professional trader and fund manager, this is a reminder that trading is a real business. Traders who want to scale must start treating their service with professional structure — and SST is part of the game now.
Final Thoughts
This SST update is not meant to scare traders — it’s a nudge towards maturity and professionalism.
If you’re already profitable, this is the time to make sure your structure is clean and legal.
And if you’re just starting out, knowing these things puts you way ahead of the game.
