The Ministry of Finance in late 2019 issued a release concerning service tax and the implications of the tax on imported services, including digital services.
In general, businesses have been required to self-account for service tax imposed on imported taxable services at a rate of 6%. Effective 1 January 2020, digital services provided by foreign service providers (registered) are also subject to the 6% service tax.
The guidance addresses the potential cascading effect of the services tax and price hike issues, including:
Read a 2020 report prepared by the KPMG member firm in Malaysia
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