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.  

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.