Digital Tax Rate In Malaysia Set At 6%, To Begin 1 January 2020
Author Avatar

 

Digital Tax Rate In Malaysia Set At 6%, To Begin 1 January 2020

The Dewan Rakyat has passed a bill to implement a digital service tax beginning 1 January 2020. The approved rate is set at 6%, which the government feel is fair and is lower than in other countries.

Originally announced at Budget 2019, the proposed digital service tax would be imposed foreign digital service providers such as Netflix and Spotify, game platforms such as Steam, and could even cover digital advertising avenues such as Google and Facebook.

At the Dewan Rakyat yesterday, Deputy Finance Minister Datuk Amiruddin Hamzah stated that the proposed 6% rate was deemed fair, and that it was much lower when compared to the digital tax rate in other countries, citing examples such as Russia (18%), Norway (25%), and New Zealand (15%).

“They (digital service providers) should have no problem to pay…because it’s only six per cent. If they can comply with Russia, Norway and New Zealand, I don’t see any reason why they should refuse to comply with the rate in Malaysia,” he said.


(Image: The Star)

Datuk Amiruddin also stressed that this tax is already in place for local digital service providers, but the Bill was amended to extend its reach to cover foreign companies as well. “It’s not fair if only the local digital service providers had to pay the tax. This is not a new tax, it’s just having the scopes extended to providers in other countries,” he said.

With the digital service tax approved and its rate confirmed, it will be interesting to see if foreign digital service providers choose to absorb the tax, or decide to increase their prices and pass on the tax charges to customers.

(Source: Malay Mail)

 

0 0 votes
Article Rating

SHARE

Comments (0)

Subscribe
Notify of
0 Comments
Inline Feedbacks
View all comments
Top Budget 2019 Articles
Post Image
Budget 2019: BR1M Renamed As Bantuan Sara Hidup; Offers Cash Assistance For B40 Households
Pang Tun Yau
- 3rd November 2018
The new Malaysian government will continue the cash grant program from the previous administration as a means of assisting the B40 households.
Post Image
How To Make The Most Out Of The New Budget 2019 Incentives
Pang Tun Yau
- 7th November 2018
Now that the Budget 2019 dust has settled, let’s take a look at what you can do to make the most of the new incentives.
Post Image
Budget 2019: 10 Key Highlights
Jacie Tan
- 6th November 2018
From taxes to financial assistance, here are the most important takeaways from the tabling of Budget 2019.
Post Image
LHDN Notifications On SVDP Only For Those Earning RM4,000 And Above
Olivia Song
- 7th February 2019
Letters and emails have been sent out to ensure those earning RM4,000 and above declare their income and register as taxpayers under the Special Voluntary Disclosure Programme.

Related articles

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