General

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• When did GST transition to SST?

  GST 6%
  From 1 April 2015

  GST 0%
  1 June 2018 - 31 Aug 2018

  Sales & 6% Service Tax
  From 1 September 2018

  6% Service Tax on Digital Service from 1 Jan 2020

  8% Service Tax on IT & Digital Service from 1 Mar 2024*

  *The service tax rate for telecommunication services remains at 6%.

• Are telecommunication services subject to Service Tax?

  Effective 1 Sept 2018, provision of all telecommunication services by telcos to customers are subject to Service Tax. These include outbound calls, reverse charge calls, IDD calls, toll-free services, telex, video conference, in-bound and out-bound roaming, Bulk SMS, fax, VoIP, lease lines, bandwidth service, maintenance of facilities, on-site support, broadband, installation of internet connection, etc.

  Value added services in relation to telecommunication services such as Firewall services, Service Level Guarantee, Content Filtering services, encryption services, network monitoring and analysis services are also subject to Service Tax. 

• Is Service Tax applicable on my devices purchase with telecommunication services?

  No, devices (Smartphones, Modems, Phone accessories) are considered as goods and therefore not subject to Service Tax. 

• Is Service Tax applicable on Mobile Content Services?

  Mobile Content Services which are currently offered via three mediums; i.e. short messaging services (SMS), multimedia messaging services (MMS) and wireless application protocol (WAP) are considered as telecommunication services. Hence, Service Tax is applicable. 

  Examples: Mobile phone personalisation (ring tones, graphics, java games), Infotainment (sport news, feng shui tips), Information (weather forecast, prayers info, stocks alert), Communication (chat/find a friend, share a joke) and Others (donation).

• Charge to Bill Services

  IT/ Digital services which are charge to Maxis bill such as ‘Pay with Maxis' is also known as Direct Carrier Billing (DCB), SECOM Smart Security services and Astro bundle products where you can charge your subscriptions, app purchases or digital contents subscriptions from Google Play Store, Apple App Store, Huawei App Gallery and application services provider to your Maxis bill on a monthly basis or as a one-off charge.

  Charge to bill services are not subject to Service Tax. However, the amount charged to your Maxis bill for your purchases or digital contents or subscriptions may include Service Tax on Digital services charged by the service or application provider.

• As a foreigner who is staying or working in Malaysia, are my Maxis bill charges subject to Service Tax?

  Yes. Service Tax is applicable to anyone who uses telecommunication services in Malaysia.

• I am residing in a designated area or duty-free zone (Langkawi, Labuan and Tioman). Are my telecommunication usages subject to Service Tax?

  Your telecommunication usages at designated areas or duty-free zones are subject to Service Tax as prescribed by the Government.

• Is the Mobile SIM replacement fee subject to Service Tax?

  No, the Mobile SIM replacement fee is NOT subject to Service Tax.

• I am charged RM10 Reconnection Fee to reconnect my suspended line. Is this subject to Service Tax?

  This is a service fee as part of provision of telecommunication services. Therefore, it is subject to Service Tax.

• What is Service Tax rate on my telecommunication services?

  The prevailing Service Tax rate is 6%.

• The Government announced the Service Tax rate revision from 6% to 8% effective 1 March 2024. Are my telecommunication services be impacted with the 8% revised rate?

  Service Tax rate for telecommunication services is maintained at 6%. However, if you subscribe to separate Digital Services, 8% Service Tax will be applicable effective 1 March 2024.

• If I sign up for a bundled services comprises telecommunication and Digital services (e.g. contents streaming), what is the applicable Service Tax rate effective from 1 March 2024?

  The bundled services will be subject to Service Tax at 6% as the contents are not offered separately from the telecommunication services.

• If I add-on Digital services (e.g. contents streaming) to the existing telecommunication services, what is the applicable Service Tax rate effective from 1 March 2024?

  Add-on Digital product will be subject to Service Tax at 8% as the add-ons are offered separately from the telecommunication services.

• What is the Service Tax treatment of Digital services (e.g. contents streaming) if it is given for free as part of my telecommunication services?

  Service Tax is not chargeable on free services.

• Based on my Maxis bill, can I differentiate Service Tax rate charged on my services?

  Please refer to Service Tax indicator in your bill.

  • 'Y' – refers to services subject to 6% Service Tax
  • ‘O’ – refers to services subject to 8% Service Tax
  • 'N' – refers to services or goods which are exempted or non-taxable