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The Royal Malaysian Customs Department (“RMCD”) has announced that the official online portal for Service Tax on digital services (“MySToDS”) will go live on 1 April 2020. 

MySToDS will be the portal for foreign registered persons (“FRPs”) to submit returns, pay tax and for other matters allowed by the Director General.  The RMCD has also informed that login details including temporary password will be sent to the respective FRP’s business email address that was registered with the RMCD. 

Meanwhile, a Guide on Digital Services by Foreign Service Provider (as at 30 March 2020) is now available.  Amongst others, the Guide provides guidance on the submission of return (i.e. DST-02) and payment of Service Tax on digital services (“SToDS”) as follows: -

  • DST-02 shall be submitted online through MySToDS at mystods.customs.gov.my.
  • Where the FRP charges its consumer in a currency other than Ringgit Malaysia (MYR), the total value of digital services and the amount of SToDS shall be converted to MYR for reporting purposes: - 

a) For conversion done on a daily basis, the FRP shall use the daily conversion rate.  

b) For conversion done at the end of the taxable period, the FRP shall use the conversion rate either at: (i) the end of each taxable period; or (ii) the time of furnishing the DST-02. 

The basis of conversion shall be used consistently. 

• Amendments to DST-02 are allowed online: - 

Scenarios

Rules

Before submission of DST-02 
(Status shown as ‘Draft’)

No limitation to amend (edit) DST-02

After submission of DST-02 but payment has not been made

(Status shown as ‘Submitted’)

If the amendment to DST-02 results in:

  1. Additional SToDS, the tax shall be paid accordingly.
  2. Reduction to SToDS, a verification by RMCD officer is required and amendment is allowed up to three (3) times only.

After submission of DST-02 and payment has been made
(Status shown as ‘Paid or Partial Paid’)

• Payment of SToDS in MYR can be made via:- 

a) Telegraphic transfer (“TT”); or Payment of SToDS in MYR can be made via:- 

b) Financial Process Exchange (“FPX”) – this method will require the FRP to have a bank account in Malaysia (available from 1 July 2020). 

  • For payment via TT, the FRP is required to update payment details in MySToDS and submit the proof of payment once payment has been made.  Payment by the FRP will only be processed by the RMCD upon payment credited to the RMCD’s account and payment information has been updated through MySToDS by the FRP. 
  • Payment made through FPX (expected to be available from 1 July 2020) can be done through MySToDS once DST-02 is submitted and a Statement is generated. 

For more details, please refer to the Guide which can be accessed via the above link.  

Separately, the RMCD is also notifying the respective FRP on the above matters via email, with the bank account details of the RMCD for payment of SToDS.  FRPs should keep a lookout for the email from the RMCD.  

The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation.

Contact KPMG

For more information on our core service offerings, please contact:

Petaling Jaya Office

Tai Lai Kok
Executive Director –
Head of Tax and Head of Corporate Tax
ltai1@kpmg.com.my
+ 603 7721 7020

Long Yen Ping
Executive Director –
Head of Global Mobility Services yenpinglong@kpmg.com.my
+ 603 7721 7018

Bob Kee
Executive Director –
Head of Transfer Pricing
bkee@kpmg.com.my
+ 603 7721 7029

Ng Sue Lynn
Executive Director –
Head of Indirect Tax
suelynnng@kpmg.com.my
+ 603 7721 7271

Soh Lian Seng
Executive Director –
Head of Tax Risk Management
lsoh@kpmg.com.my
+ 603 7721 7019

Nicholas Crist
Executive Director –
Corporate Tax
nicholascrist@kpmg.com.my
+ 603 7721 7022

Dato’ Leanne Koh
Executive Director – 
Corporate Tax
leannekoh@kpmg.com.my
+ 603 7721 7026

Neoh Beng Guan
Executive Director – 
Corporate Tax
bneoh@kpmg.com.my
+ 603 7721 7025

Ong Guan Heng
Executive Director – 
Corporate Tax
guanhengong@kpmg.com.my
+ 603 7721 7027

Chang Mei Seen
Executive Director – 
Transfer Pricing
meiseenchang@kpmg.com.my
+ 603 7721 7028

Ivan Goh
Executive Director – 
Transfer Pricing
ivangoh@kpmg.com.my
+ 603 7721 7012

 

 

 

Evelyn Lee
Executive Director –
Penang Tax
evewflee@kpmg.com.my
+604 238 2288 (ext. 312)

Regina Lau
Executive Director –
Kuching Tax
reglau@kpmg.com.my
+6082 268 308 (ext. 2188)

Titus Tseu
Executive Director –
Kota Kinabalu Tax
titustseu@kpmg.com.my
+6088 363 020 (ext. 2822)

Ng Fie Lih
Executive Director –
Johor Bahru Tax
flng@kpmg.com.my
+607 266 2213 (ext. 2514)

Crystal Chuah Yoke Chin
Tax Manager –
Ipoh Tax
ycchuah@kpmg.com.my
+605 253 1188 (ext. 320)