Revised Service Tax Rate for Digital Services/Content

Effective from 1 March 2024, the rate of service tax under the Service Tax Act 2018 is increased from 6% to 8% on all taxable services excluding telecommunication services and a few other services which will maintain at 6%.

Frequently Asked Questions

1. How will service tax affect CelcomDigi customers?
 Telecommunication services including voice, Internet, SMS, MMS, roaming, data/ Internet and value-added services will continue to be subject to 6% service tax except for digital services/ contents.

2. What CelcomDigi services are subject to 8% service tax from 1 March 2024?
Please find below the digital services/ contents subject to 8% service tax:

3. Are Talktime Transfer* and Credit Share* falls under the telecommunication service category?

Yes, and they are subject to 6% service tax. 

*Service tax is only applicable to postpaid users transferring credit to a prepaid number.
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4. Are there any digital services/ contents that are non-taxable?

Yes, digital services/ contents purchased via Direct Operator Billing (DOB) where CelcomDigi acts as a payment channel, are non-taxable. It’s important to note that service tax is already included in the price charged by the service provider, where applicable.

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5. How do I know I have been charged service tax for any of my purchase or subscription through CelcomDigi Postpaid?
You can refer to your postpaid bill. For digital services/ content services subject to 8% service tax, do refer to the listing above.

Please rest assured, for Digi customers, any applicable adjustment will be provided in the same bill except for customers with 8th March bill date. Adjustments for these customers & for Celcom customers will be provided in April 2024 bill.

6. Will there be service tax charged for Malaysian prepaid subscribers?
The Government has announced that effective from 6 September 2018, prepaid service provided to Malaysian is exempted from service tax. For example, if you reload RM10, you will receive a credit of RM10. So, there is no service tax charged for Malaysian prepaid subscribers.

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7. I am a non-Malaysian. Is the service tax exemption on prepaid service applicable to me?

Service tax exemption on prepaid services is only applicable to Malaysians. Hence, when you reload, service tax is applied accordingly. For example, if you reload RM10, a 6% service tax of RM0.57 will be applied, and you will receive a credit of RM9.43 into your account.

8. Where can I obtain more information on SST?
To know more, please visit here.