Service tax to be levied on digital services: Budget 2019

KUALA LUMPUR: The Malaysian Finance Ministry (MOF) has announced the implementation of service tax on foreign digital services – including software, music, video and digital advertising – effective Jan 1, 2020.

In Finance Minister Lim Guan Eng’s presentation, several company logos were shown including music streaming service Spotify, video streaming site Netflix and game distribution platform Steam.

In a statement, MOF says that “for online services imported by users, foreign service providers will be required to register with customs, apply and remit the relevant service taxes that will take effect starting Jan 1, 2020”.

The Star online dated 2 Nov 2018