Govt allows additional student loan to cover Malaysia’s new 6% tax

The government has made provisions under its student loan scheme to allow Maldivian students studying in Malaysia to apply for additional loan amounts to cover a new 6% tax imposed by Malaysian authorities on foreign students.

The Malaysian government recently introduced a 6% tax on tuition fees paid by international students. In response, the Maldivian Ministry of Higher Education has announced that the additional tax amount will be included in invoices sent by Malaysian colleges or universities to the ministry, as these institutions are already paying the tax.

Students who require the additional amount to be added to their existing loan must submit a request form to the ministry.

Higher Education Minister Ali Haidar previously stated that the 6% tax would not be borne directly by students.

According to the Malaysian government, private educational institutions charging annual tuition fees of RM60,000 or more will be required to register for the country’s Sales and Services Tax and apply the 6% tax to foreign student tuition fees.

The tax measure is part of broader efforts by the Malaysian government to address its fiscal requirements.