Frequently Asked Questions
Enterprise
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Your voice subscription is subject to Service Tax at 6% as it is a telecommunication service. However, IP phone charged separately is considered as goods and not subject to Service Tax.
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The entire service bundle fee (inclusive of telco services, equipment & maintenance) is considered as telecommunication services and subject to Service Tax at 6%.
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Service Tax rate for telecommunication services remains at 6%. However, if your company subscribes to other services e.g. IT or Digital Services, 8% Service Tax will be applicable effective 1 March 2024.
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The bundled services will be subject to Service Tax at 6% as these add-ons are not offered separately from the telecommunication services.
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Add-on IT/ Digital product will be subject to Service Tax at 8% as the add-ons are offered separately from the telecommunication services.
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Examples of IT or Digital services include Microsoft 365, Digital Workspace (DWS), Digital Marketing Sales Kit (DMSK), Data Centre, Firewall are considered as IT or Digital Services. These services are subject to Service Tax rate at 8%.
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No. Telecommunication services including international leased line wholly rendered/ connected outside Malaysia are not subject to Service Tax.
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The revised scope of Service Tax effective from 1 July 2025 applicable to Maxis’ services are :
- Rental & leasing – from 0% to 8%; and
- Construction works services – from 0% to 6%.
- Rental & leasing – from 0% to 8%; and
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Effective 1 July 2025, rental and leasing services involving tangible assets are subject to Service Tax at 8%. “Tangible asset” includes rental of land, building, equipment and other assets.This applies to any arrangement where Maxis grants usage rights of these assets for a specified period.
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No. Leased line rental with bandwidth (e.g. Dedicated Internet Access (DIA), Domestic Private Leased Circuit (DPLC), International Private Leased Circuit (IPLC)) and without bandwidth (e.g. Unlit Fiber) continue to be classified as telecommunication services and subject to Service Tax at 6%
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No. Equipment rental ancillary to telecommunication and connectivity services (e.g. router or mesh rental, Broadband Termination Unit (BTU) port rental, Very Small Aperture terminal (VSAT) rental) continues to be classified as telecommunication services and subject to Service Tax at 6%
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Effective 1 July 2025, rental & leasing services for IT or Digital services such as data centre charges (rack rental and its ancillary including electricity) and equipment rental on standalone basis are subject to Service Tax at 8%.
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Yes. Tower rental is subject to Service Tax at 8% under the revised scope effective 1 July 2025.
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The Government defines “construction work services” broadly to include construction, extension, installation, repair, renewal, removal, renovation, alteration, dismantling, demolition of, or facility maintenance in the construction works period.
For Maxis, the applicable services include:
- Construction of infrastructure at network mobile sites and fiber network installation
- Standalone installation
- Installation in connection with sale of equipment; and
- Dismantling services.
These services will be subject to Service Tax at 6% effective 1 July 2025.
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No. One Time Charges for set-up or installation ancillary to the provisioning of telecommunication services continue to be classified as telecommunication services and subject to Service Tax at 6%
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Add-on installation products will be subject to Service Tax at 8% as these add-ons are offered separately from the telecommunication services.
Service Tax Exemption
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Yes, there are two types of Service Tax exemptions that may apply:
- Telecommunication services (Telco to Telco services)
If your company holds a valid license issued by the Malaysian Communications and Multimedia Commission (MCMC) such as:
- Applications Services Provider (Class) [ASP (C)]
- Network Facilities Provider (Individual) [(NFP)(I)]
- Network Service Provider (Individual) [(NSP)(I)]
- Business-to-Business (B2B) exemption
If your company is registered for Service Tax under the following groups and the services acquired from Maxis are not for own consumption but for re-selling to other customers under the same Group, you may qualify for Service Tax exemption.
You may be eligible for Service Tax exemption on telecommunication services acquired from Maxis provided they are used for furtherance of your business.
Service Tax Group Taxable Service Group G IT Providers Group G Digital Service and Electronic Medium Group K Rental or Leasing Please contact us to discuss your eligibility and the supporting documents required for the exemption. Service Tax exemption will only be applied upon satisfactory review the documentation.
- Telecommunication services (Telco to Telco services)
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The FAQ’s are meant for clarification purposes only. The FAQ’s may be modified from time to time. Please refer Terms of Use and Terms & Conditions of the products and/or services for more information.
