General

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• When did GST transition to SST?

  GST 6%
  From 1 April 2015

  GST 0%
  1 June 2018 - 31 August 2018

  Sales & 6% Service Tax
  from 1 September 2018

  6% Service Tax on Digital Service from 1 January 2020

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

  8% Service Tax on Rental/Leasing & 6% Service Tax on Construction Works Service
  from 1 July 2025

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

• Are telecommunication services subject to Service Tax?

  Effective 1 Sept 2018, the provision of all telecommunication services by telcos to customers is subject to Service Tax at 6%. These include services such as 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.

  Additionally, value added services related 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 at 6%.

• Is Service Tax applicable on my device purchases with telecommunication services?

  No, outright device purchases (Smartphones, Modems, Phone accessories) are considered as goods and therefore not subject to Service Tax. Only the telecommunication services bundled with the devices are subject to Service Tax at 6%.

• Is Service Tax applicable on Mobile Content Services?

  Mobile Content Services offered via short messaging services (SMS), multimedia messaging services (MMS) and wireless application protocol (WAP) are considered as telecommunication services. Hence, Service Tax at 6% 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, are this subject to Service Tax?

  Charge to Bill services also known as Direct Carrier Billing (DCB) are not subject to Service Tax when Maxis acts as a billing agent for third-party digital service providers. These services allow you to conveniently charge purchases such as app subscriptions, digital content, or bundled services directly to your Maxis bill either monthly or as a one-off charge.

  Examples include:

  • Pay with Maxis' for app purchases or digital contents subscriptions from Google Play Store, Apple App Store, Huawei App Gallery
  • SECOM Smart Security services
  • Astro bundle products

  While Maxis does not impose Service Tax on these charges, the digital service provider may include Service Tax on Digital Services in the amount billed, which is reflected in your Maxis bill.
  

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

  Service Tax is applicable to anyone who uses telecommunication services in Malaysia, regardless of nationality or residency status. If you use Maxis services within Malaysia, your charges will be subject to Service Tax at 6%.

• 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 usage at designated areas or duty-free zones is 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 as t is treated as the cost of goods.

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

  Yes. This is a service fee as part of provision of telecommunication services. Therefore, it is subject to Service Tax at 6%.
  

• 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 remains at 6%. However, if you subscribe to separate Digital Services, 8% Service Tax will apply 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 digital content is not offered separately from the telecommunication services.

• If I add-on Digital services (e.g. contents streaming) to my 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