KUALA LUMPUR: Frequently asked questions, and the responses, on the imposition of the service tax on imported digital services, effective Jan 1, will be issued soon, the Finance Ministry said on Dec 23.
Noting that the tax rate would start at 6% on digital service providers, it noted: “All service tax revenue will be handed over to the Malaysian government.
“The proceeds will be used to fund national development and people’s wellbeing activities such as improving road infrastructure, health and education which will definitely continue to support a sustainable economic development in the long run.”
Examples of taxable digital services are digital content, software programmes, electronic data management services and online advertising services.
The ministry said the Royal Malaysian Customs Department (JKDM) is preparing guidelines on commonly asked questions related to imported digital services.
“JKDM will also conduct roadshows locally and abroad to provide information and facilitate early registration of related digital services companies,” it added.
More information can be obtained at the JDKM call centre at 1300-888-500. – Bernama
