Frequently Asked Questions
SERVICE TAX GUIDE
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Effective 1 September 2018, the Malaysian Government replaced the 0% Goods and Services Tax (GST) with a 6% Service Tax on telecommunication services. Additionally, as of 1 March 2024, the Service Tax rate has been increased to 8% for digital service providers in the country. This guide explains how these changes affect your services and billing.
GENERAL INFORMATION
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Traditional telecommunication services provided by local telcos are subject to the 6% Service Tax, including:
- Voice calls (local and IDD)
- SMS
- Basic data services
- Roaming services
- VoIP
- Lease lines
- Basic bandwidth services
- Installation and maintenance services
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Digital services are subject to the 8% Service Tax, including:
- Digital products and content subscriptions
- IT services
- Managed services bundled with equipment for digital/IT services
- Software and application services
- Digital advertising services
- Cloud storage services
- Online gaming subscriptions
- E-learning platforms
- App store purchases
- Other digital services
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- All customers using telecommunication services in Malaysia are required to pay the applicable Service Tax.
- Customers in designated areas or duty-free zones (Langkawi, Labuan, and Tioman) are not exempt.
DIGITAL SERVICES & CHARGE TO BILL
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- Starting 1 March 2024, digital service providers will implement an 8% Service Tax.
- All charges in app stores are now "inclusive of SST"—the price you see already includes the tax.
- No additional tax will be added to your bill.
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Charge to Bill is not subjected to additional 8% Service Tax in your Maxis bill. Your digital service subscription fee (examples: Facebook ads, Amazon Web Services (AWS), Google store, Huawei & iTunes store purchases) may already include 8% Service Tax charged by your service or application provider, effective 1 March 2024.
Examples:
Example 1: A content item was previously priced at RM10. With the implementation of digital tax, this content will be priced at RM10.80 by the content provider. This amount will be reflected in your Maxis bill and no further tax will be applicable.
Example 2: Maxis Lifestyle subscriptions with the implementation of digital tax will have prices inclusive of tax. These amounts will be reflected in your Maxis bill and no further tax will be applicable.
DIGITAL SERVICES & CHARGE TO BILL
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- Usage before 1 September 2018: 0% GST
- Usage from 1 September 2018 to 29 February 2024: 6% Service Tax for all services
- Usage from 1 March 2024 onwards:
- 6% Service Tax for traditional telecommunication services
- 8% Service Tax for digital services (already included in the price)
- Your bill will clearly mark taxable items with the applicable tax rate
POSTPAID SERVICES
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- Basic telecommunication usage (calls, SMS, basic data) is subject to the 6% Service Tax
- Digital services bundled with your plan will have the 8% Service Tax already included in their price
For more information refer here.
PREPAID SERVICES
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- Tax exemption: Malaysian prepaid users are exempt from Service Tax on basic telecommunication services.
- Top-up value: When you top up RM10, you receive RM10 credit.
- Digital services: Digital services will have the 8% Service Tax already included in their prices.
- SIM pack pricing: Hotlink SIM packs remain at RM10 with RM5 credit upon activation.
- Registration fee: No registration fee applies.
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- Service Tax applies: A 6% Service Tax continues to apply to basic prepaid services.
- Digital Service Tax: An 8% Service Tax is included in the price of digital services.
- Top-up value: When you top up RM10, you receive RM9.43 credit (after 6% Service Tax).
- Activation timing: Service Tax is charged at the point of top-up activation, not at purchase.
- Documentation: Tax will be reflected in your e-Statement, not on the retailer's receipt
DEVICE & EQUIPMENT INFORMATION
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- Device price (upfront or instalment payments)
- Device advance payments
- Safe Device, Basic and Premium Protection plans
- Device remaining balance payments
- Early termination charges for device contracts
- Device accessories
ENTERPRISE SERVICES
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- Traditional telecommunication services: 6% Service Tax.
- Digital products and IT services: 8% Service Tax (included in price).
- Managed services bundled with equipment for digital/IT services: 8% Service Tax.
- Services rendered outside Malaysia but billed to Malaysian companies are exempt from Service Tax.
- Telecommunication services at international sites are not subject to Service Tax
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- Equipment bundled with traditional telecommunication services: Subject to 6% Service Tax.
- Equipment bundled with digital/IT services or managed services: Subject to 8% Service Tax.
- Equipment purchased separately: Not subject to Service Tax.
