TAX QUESTIONS? YOU ASK LAH!

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Q: My wife, who is a Singaporean citizen, gave birth to our child in Malaysia. She used midwifery services at a local hospital while giving birth and stayed there for 3 days. Are the charges subject to service tax?

A: Yes. Services provided by the local hospital, including accommodation charges for your wife who is a non-citizen are subject to service tax because only a Malaysian citizen can be exempted from the service tax for healthcare services.  

Wishing you plentiful tax savings!

Zen Chow

YYC Tax Guru

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