Enterprise

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• Are the charges for Relocation, Bandwidth Upgrades, Bandwidth Downgrades, Ad hoc Engineering Services, subjected to the 6% Service Tax?

  Effective 1 Sept 2018, all provision of telecommunication services by telcos are subjected to the 6% Service Tax. These include IDD calls, telex, video conference, roaming, fax, VoIP, lease lines, MVNO, bandwidth services, billing and collection services, maintenance of facilities, installation, etc.

• My company subscribes to Business Voice Enhanced and we bought an IP phone separately. Is the equipment in this case taxable? (Note: IP Phone bought as outright purchase)

  Your voice subscription is subjected to the 6% Service Tax and the equipment is not taxable.

• What is the tax treatment for my company’s telecommunications services which are bundled with equipment and maintenance support (for example, Business Voice Enhanced services bundled with IP Phone and maintenance support; and Business Voice SIP Trunk service bundled with Media Gateway)?

  The entire service bundle (inclusive of telco services, equipment & maintenance) is subjected to the 6% Service Tax.

• Is managed service (e.g. Managed IP Telephony service) which is part of a bundled service with equipment (e.g. IP Phone), subjected to the 6% Service Tax?

  Yes, the managed service is subjected to the 6% Service Tax.

• What is the tax treatment for telecommunication services rendered outside of Malaysia but billed to a Malaysian company? Is the service subjected to the 6% Service Tax?

  Services rendered outside are considered as exported services and are not subjected to the 6% Service Tax.

• Are telecommunication services rendered at international sites subjected to the 6% Service Tax?

  No. Telecommunication services rendered at international sites are not subjected to the 6% Service Tax.