Digital Service Tax
New service tax effectively come into operation on 1 January 2020.
Characterics
- delivered or subscribed over the internet or other electronic network
- delivered throught information technology medium (human eye cannot see and touch)
- minimal or no human intervention (eg. automation, click to subscribe and consume)
Taxable Person
- Foreign Service Provider (FSP)
# any person who is outside Malaysia providing any digital service to a consumer directly # any person who is outside Malaysia operating an online platform for buying and selling goods # providing services (whether or not such person provides any digital services) who makes transactions for provision of digital services on behalf of any person
- Threshold exceed RM500,000 (historical or future 12 months)