Malaysia to impose 6 percent tax on tuition fees for international students

Malaysia will introduce a 6 percent tax on college fees for international students from next month.

The new tax will apply to private preschools, schools, colleges, and universities that admit international students.

It is part of broader reforms aimed at strengthening Malaysia’s tax system and boosting government revenue, according to officials.

The tax will not affect Malaysian nationals, who will continue to be exempt from the levy.

Educational institutions that charge annual tuition fees of RM 60,000 or more will be required to register for the tax. Institutions offering study opportunities to international students must also register.

Malaysia had previously set a goal of attracting 250,000 international students by 2025 under its National Education Development Plan.

However, education experts have warned the new tax could deter prospective students and make the target more difficult to reach.

The tax is expected to increase costs for a large number of Maldivian students currently studying in Malaysia, one of the most popular overseas education destinations for Maldivians.