Malaysia Customs Agency Explains Service Tax Exemption for Digital Payment Service Providers

The Malaysian Customs Department Aug. 1 issued Service Tax Policy No. 1/2022, explaining a service tax exemption for local providers of digital payment services. The agency clarifies that: 1) a service tax exemption applies effective Aug. 1, 2022, through July 31, 2025, for qualified local non-bank payment instrument issuers, merchant acquirers, and payment system operators; 2) a provider must charge and remit the tax on services provided before Aug. 1, if the services period began before that date and continued after it; 3) a provider can issue a credit note to the customer, and make an adjustment, for tax invoiced ...