Experts say 6% digital tax will be borne by consumers from Jan 1, 2020

The new 6% tax set to be imposed from Jan 1, 2020 on foreign digital service providers will be borne by the consumers, according to tax experts.

Tax expert Senthuran Elalingam said, as an illustration, he currently subscribed to iflix, Astro, Spotify and Netflix.

“Each provider charges me a monthly subscription. The first two are local companies, which are registered for service tax — charging me 6% service tax on each bill.

“The last two are foreign companies, which are not required to register for service tax. However, starting Jan 1, 2020, Netflix and Spotify would need to register for digital services tax and bill me 6% service tax,” he told The Edge 

By The Edge 10th April 2019