Malaysia’s Digital Tax to Apply to Services Only, Not Goods

Consumers to pay 6% digital services tax from January 2020, Malaysia’s Finance Ministry says in FAQ sent to media.

• Tax applies to imported digital services such as mobile apps, e-books, software, website hosting and online advertising
• Services provided by Netflix, Spotify, Google App Store will be taxed
• Eligible digital service providers may be fined up to 30,000 ringgit or jailed up to two years, or both if they fail to register with the govt

To contact the reporter on this story:
Anisah Shukry in Kuala Lumpur at ashukry2@bloomberg.net

To contact the editor responsible for this story:
Yudith Ho at yho35@bloomberg.net ...