Foreign digital services providers to be taxed from Jan 1, 2020

Foreign digital services providers to be taxed from Jan 1, 2020
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KUALA LUMPUR (Nov 2): Foreign digital service providers are set to be taxed from Jan 1, 2020 onwards, according to the Malaysian government’s Budget 2019.

Foreign service providers must register with the Royal Malaysian Customs department and will be charged with the relevant service tax effective Jan 1, 2020,” Finance Minister Lim Guan Eng said in his Budget 2019 speech in Parliament today.

Examples of services include music, video, streaming services and digital advertisements, he said. Among brands listed in the presentation were Netflix, Spotify and Steam.

The tax measure is expected to balance competition between online retailers and brick and mortar stores, Lim said.