We’re shedding light on a significant regulatory update that impacts our services and, subsequently, your professional indemnity plans. Effective 1st March 2024, the Royal Malaysian Customs Department has announced a revision in the service tax rate (SST) under the Service Tax Act 2018, increasing it from 6% to 8% for selected prescribed taxable services.
As a provider of a dental indemnity platform, DentProtect is committed to ensuring that dental practitioners in Malaysia have access to comprehensive professional indemnity covers tailored to their needs. However, with this change in the service tax rate, adjustments will be made to the SST rate for each professional indemnity plan offered through DentProtect.
Breakdown of Implications of The New SST on Policy Premiums:
To provide clarity on the implementation of this change, the Royal Malaysian Customs Department issued draft guidelines on 7th February 2024. These guidelines outline the following:
1. Indemnity insurance policies fully paid for before 1st March 2024, regardless of the coverage period, will be subject to a 6% tax rate.
2. Indemnity insurance policies fully paid for on or after 1st March 2024, regardless of the coverage period, will be subject to an 8% tax rate.
3. For indemnity insurance policies initiated before 1st March 2024 and continuing beyond that date, apportionment rules apply:
– Premiums for coverage period before 1st March 2024 will be taxed at 6%.
– Premiums for coverage period after 1st March 2024 will be taxed at 8%.
Impact on DentProtect Plans:
In line with the announcement, DentProtect will revise the SST rate for each professional indemnity plan from 6% to 8%, effective 1st March 2024.
Support Through Transition:
We understand that changes in tax rates can have financial implications. Rest assured, we’re here to support you through this transition. If you have any questions or concerns regarding how this change may affect your professional indemnity plan or any other aspect of our services, please don’t hesitate to reach out to our dedicated support team on our Live Chat or Whatsapp.
At DentProtect, our commitment remains unwavering—to provide you with the best possible service while ensuring compliance with regulatory changes. Your trust is paramount, and we’re dedicated to serving you and helping you navigate through these changes seamlessly.
Thank you for your continued partnership and trust in DentProtect.