Malaysia Customs Agency Clarifies Service Tax Treatment on Issuance of Virtual Credit Cards

The Malaysian Customs Department July 26 issued Service Tax Policy No. 7/2024, clarifying the service tax treatment on the issuance of virtual credit cards. The clarification includes that: 1) virtual credit cards issued as product enhancements over existing physical credit cards are not subject to service tax if they meet the specified conditions; and 2) service tax will be charged on the issuance of a virtual credit card if the virtual credit card is issued without a physical credit card or if the virtual credit card is intended to fully replace the function of a physical credit card. [Malaysia, Royal ...