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Frequently asked questions (FAQs)

The Government announced that Service Tax is reintroduced on 1 September 2018 by substituting the prevailing Goods and Services Tax (“GST”). Unlike GST which taxes all goods and services unless exemption is provided, Service Tax is only charged on certain prescribed services made by prescribed taxable persons.

The framework is similar that it is a single staged tax by a service provider. However, there are changes to the prescribed services that are taxable based on the proposed taxable services list.
 
Only Service Tax registrants can charge and collect the Service Tax.
Life insurance policy or family takaful contract sold to an individual is not a taxable service and hence, the premium or contribution is not subject to Service Tax. However, life insurance policy or family takaful contract sold to a business organisation is a taxable service and hence, the premium or contribution is subject to Service Tax at 6%. There will be no issuance of new policy/contract.

If you have made full payment for the total premium/contribution including GST, you will not be charged for Service Tax for the coverage period from 1 September 2018 to 31 December 2018.

No, only life insurance policy/family takaful contract sold to business organisation will be subject to Service Tax.
An SMS notification will be sent to you on the revised amount of your premium/contribution (inclusive of Service Tax). Your consent is not required as this is part of the government regulatory.
No
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