Malaysia foreign e-services 6% SST
- Apr 15, 2019 | Richard Asquith
The Malaysian parliament has approved a Bill imposing its new Sales and Service Tax (SST) on foreign providers of digital services to local consumers.
The 6% tax will apply to digital, or e-services, including: downloads/steaming media; gaming; e-books; software; automated e-learning; SaaS supplies; storage; and subscription sites etc. Malaysian consumers are defined based on any two of the following criteria:
- Ordinarily resident in Malaysia
- User with a Malayzian IP address
- Customer who makes payments via Malaysian-registered credit card
The amendment to the SST laws will apply to both service providers and platforms that bill on behalf of non-resident providers. These providers and marketplaces will be obliged to register with the Malaysian tax office to report and remit applicable Services Tax