Frequently Asked Questions
Enterprise
-
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.
-
The entire service bundle fee (inclusive of telco services, equipment & maintenance) is considered as telecommunication services and subject to Service Tax at 6%.
-
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.
-
The bundled services will be subject to Service Tax at 6% as these add-ons are not offered separately from the telecommunication services.
-
Add-on IT/ Digital product will be subject to Service Tax at 8% as the add-ons are offered separately from the telecommunication services.
-
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%.
-
No. Telecommunication services including international leased line wholly rendered/ connected outside Malaysia are not subject to Service Tax.
-
The expanded scope of Service Tax effective from 1 July 2025 applicable to Maxis’ services are:
- Rental & leasing services: Previously was set to increase from 0% to 8% from 1 July 2025. However, the rate has been reduced to 6% effective 1 January 2026, with no change to the scope of services affected.
- Construction works services – from 0% to 6%.
-
Effective 1 July 2025, rental and leasing services involving tangible assets are subject to Service Tax. "Tangible asset" refers to assets with physical form, such as land, buildings, equipment and other physical items. This applies to arrangements where Maxis grants right of permission to use these tangible assets for a specific period.
-
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%.
-
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%.
-
Effective 1 July 2025, rental & leasing services for IT or Digital services, such as data centre charges (including rack rental and related electricity costs) and equipment rental on a standalone basis, are subject to Service Tax at 8%. However, the rate has been reduced to 6% effective 1 January 2026.
-
Yes. Standalone tower rental is subject to Service Tax at 8% under the revised scope effective 1 July 2025. However, the rate has been reduced to 6% effective 1 January 2026.
-
Eligibility for Service Tax exemption, if any, depends on the specific facts and circumstances of the tower rental arrangement. Please refer to the Service Tax Exemption section for details on applicable exemptions and contact us if you require further discussion.
-
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. -
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%
-
Add-on installation products will be subject to Service Tax at 8% effective 1 July 2025 as these add-ons are offered separately from the telecommunication services. However, the rate has been reduced to 6% effective 1 January 2026.
Service Tax Exemption
-
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)
Ready to sign up with Maxis Business?
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.
