6% Digital Tax On Google Services In Malaysia Begins 1 January 2020
Author Avatar

 

6% Digital Tax On Google Services In Malaysia Begins 1 January 2020

Google Malaysia has announced that it will begin charging a 6% digital tax for its paid services in Malaysia starting from 1 January 2020. This is following the recent revision of the Service Tax (Amendment) 2019 Bill, approved by Dewan Rakyat in April 2019.

For now, Google confirmed that the 6% digital tax is applicable for G Suites services, but a spokesperson says to “wait for further announcements” for other Google-owned services, such as YouTube Premium, YouTube Music, and Google Play purchases (including apps, in-app purchases, and Google Play books and movies). Any changes in pricing will be notified to users via email.

“We always comply with the tax laws in every country we operate in, and we continue doing so as tax laws evolve. To be in compliance with Malaysia’s new Sales & Services Tax, we will charge a 6% Services Tax to our clients in the country, starting January 1, 2020, once the law comes into effect,” said a Google spokesperson in a statement.

The search giant has also notified its users that the Service Tax charged on user purchases will be visible as a separate line in “Transactions” under “Billing & Payments”.

The new digital tax was first raised during the Budget 2019 tabling, and was subsequently confirmed in April this year. It is imposed on all foreign digital service providers, and is expected to also affect popular streaming services, digital advertising services, as well as digital game distribution companies. This includes major names such as Netflix, Spotify, and Steam.

The amendment was done with the intention to create equal opportunities between foreign and local players, as well as to generate more revenue for the Malaysian government. It was reported that the country’s tax revenue could increase by more than RM2.4 billion per year with the introduction of this digital tax.

(Source: The Star, SoyaCincau)

 

0 0 votes
Article Rating

SHARE

Comments (0)

Subscribe
Notify of
0 Comments
Inline Feedbacks
View all comments
Top Personal Finance News Articles
Top Personal Finance News Articles
Post Image
Petrol Price Malaysia Live Updates (RON95, RON97 & Diesel)
The RinggitPlus Team
- 15th September 2021
We provide weekly updates on every Friday at 5pm on the prices of RON95, RON97 and Diesel in Malaysia and a chart that shows the movement of fuel prices across a 6-week period. Bookmark this page now!
Post Image
Shopee Introduces SPayLater, Lets Users Buy Items Now And Pay Later
Alex Cheong Pui Yin
- 18th January 2021
Shopee has introduced a new payment feature that lets its Malaysian users purchase items and pay for them […]
Post Image
Touch n Go RFID: What Malaysian Road Users Need To Know
Jacie Tan
- 10th August 2018
Everyone’s talking about Touch ’n Go RFID being used at Malaysian highway tolls soon – here’s what you need to know about it.
Post Image
Best High Interest Savings Accounts In Malaysia (July 2021)
Pang Tun Yau
- 28th July 2021
Make your money work for you by depositing them into the best high-interest savings accounts in Malaysia!

Related articles

Related Posts Image
Related Posts Image
Related Posts Image
Related Posts Image