Malaysia: Update, taxation of digital services by foreign service providers

Malaysia: Update, taxation of digital services

An updated guide (1 February 2021) addresses the tax treatment of digital services provided by foreign service providers. The updated guide replaces an earlier version from August 2020.

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The updated guide incorporates certain recent changes to the service tax legislation (effective 1 January 2021) and provides additional examples and clarifications regarding:

  • Examples of what is considered (and not considered) to be the provision of digital services
  • No service tax registration required by a foreign service provider that only provides digital services to a company in Malaysia that is part of the same group of companies
  • The issuance of credit notes and debit notes
  • Penalty provisions

Read a February 2021 report prepared by the KPMG member firm in Malaysia

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