Maldives to cover Malaysia's new tax for students

The Ministry of Higher Education has announced that it is making arrangements to pay the newly introduced tax on foreign students in Malaysia for Maldivian students enrolled in the country.

Malaysia recently began implementing a 6% sales and service tax on tuition fees paid by foreign students studying in private educational institutions. This measure is part of a broader tax reform introduced in July.

Malaysia is among the countries where a significant number of Maldivian students are pursuing higher education. These students include those funded through government scholarships and loans, as well as those financing their own studies.

According to the ministry, tax payments are being arranged for students whose course fees exceed MVR 218,496 (RM60,000) annually. The ministry stated that the tax amount is being paid when included in the invoices of students on scholarships. Efforts are also underway to make similar arrangements for students studying under government-issued higher education loans.

The Malaysian government has mandated that private educational institutions charging fees above the threshold must register for the tax and apply the 6% charge on tuition paid by international students.