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Q: My wife, who is a Singaporean citizen, gave birth to our child in Malaysia. She used the midwifery services at a local hospital. Due to our child’s complications, our child was treated for 14 days after delivery. Are the charges for the baby subject to service tax?
A: If you have successfully registered the child’s birth certificate as a Malaysian citizen at the National Registration Department when the baby was discharged from the local hospital, the medical treatment of the baby, including accommodation charges, medicines, and doctor consultation fees are not subject to service tax because a Malaysian citizen is exempted from paying service tax for healthcare services.
Wishing you plentiful tax savings!
Zen Chow
YYC Tax Guru