General

EXPAND ALL COLLAPSE ALL

• 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

• Is telecommunications service subjected to Service Tax?

  The Malaysia government has announced that effective 1 Sept 2018, the 6% Service Tax is replacing the Goods and Services Tax (GST) which was at zero percent (0%). Essentially, all provision of telecommunication services by telcos to customers are subjected to the 6% Service Tax. These include IDD calls, telex, video conference, roaming, fax, VoIP, lease lines, bandwidth service, maintenance of facilities, installation, etc.

• How will the 6% Service Tax be applied for telecommunication services and related goods and services effective 1 Sept 2018?

  Below is how the 6% Service Tax will be applied:

  Telecommunication usages

  Roaming usages, which were previously non-taxable under GST, is now taxable under 6% Service Tax effective 1 Sept 2018 onwards.

  Devices (Smartphones, Modems, Phone accessories)

  Telecommunication devices, such as smartphones and modems, are subjected to 5% Sales Tax. The Sales Tax is a single stage tax levied on imported and locally manufactured goods, either at the time of importation or at the time the goods are sold or otherwise disposed of by the manufacturer.

  However, we will not charge the Sales Tax for any devices purchased at Maxis stores. This is because as a single stage tax, the Government only collects sales tax during importation from the manufacturer or importer.

  Content Services

  Content services subscription, such as caller ringtones, music videos and sports content, which were subjected to GST, are also subjected to the 6% Service Tax.

  Charge to Bill

  Charge to Bill are your purchases or subscription with other content or application service providers such as Google Play Store, Apple App Store and others. If you have selected to make these payments through Maxis, your purchase or subscription will be charged to your Maxis bill on a monthly basis or as a one-off charge.

  Charge to Bill is not subjected to the 6% Service Tax in your Maxis bill – however, your subscription may include 6% Service Tax, charged by your service or application provider.

• What are the telecommunication services that are subjected to the 6% Service Tax and are there any exemptions?

  According to the Sales & Service Tax Act 2018, customers are subjected to the 6% Service Tax for ALL telecommunication services provided by telcos. These include IDD calls, telex, video conferencing, roaming, fax, VoIP, lease lines, bandwidth services, maintenance of facilities, installation, etc.

• As a foreigner who is staying or working in Malaysia, are my Maxis bill charges subjected to 6% Service Tax as well?

  Yes. The 6% 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 the 6% Service Tax?

  Your telecommunication usages at designated areas or duty-free zones are subjected to the 6% Service Tax as prescribed by the Government.

• Is the Mobile SIM replacement fee subjected to the 6% Service Tax?

  No, the SIM replacement fee is NOT subjected to the 6% Service Tax.