Following the announcement at the tabling of Budget 2024 last October, today marked the beginning of the new service tax rate which has been increased from 6% to 8%. For Unifi customers out there, only some of your services will be affected by the new rate.
The new rate only applies to selected services
Based on the FAQ document that TM published on its website, the new tax rate applies to services that are categorized as information technology, advertising, management services, consultancy, training & coaching services, and domestic digital services.
Since TM has so many product offerings under its wings, it may seem a bit hard to pinpoint which services are affected by the new tax rate. To the telco’s credit, the company did list four major services that are taxed with the newly implemented 8% service tax rate:
- Unifi TV standalone content subscription from PlayTV@Unifi (e.g movie rental)
- Unifi Business digital marketing solutions
- Cloud services
- Security services
Service tax for Unifi TV contents tied with Unifi Broadband remains the same
Speaking about Unifi TV content, TM said that the service tax for broadcasting services that are ancillary or complementary to the telecommunication services provided to customers remains at 6%. In other words, the service tax for your Unifi TV pack is the same as before.
Not only that, the service tax for telecommunication offerings also remains at 6% which applies to services Unifi Broadband, Unifi Mobile, and Unifi Fixed Line. Given that the new tax rate has just been implemented today, you will probably only see changes within your Unifi bill for March or April depending on your billing cycle.