3 June 2016
MALAYSIA: Online Businesses No Exception to Standard Tax Regime
Online businesses are to be taxed in exactly the same way as conventional businesses, according to a statement by The Inland Revenue Board (IRB). In the case of a sole trader in the e-commerce sector, this will entail a tax rate of between 0% and 28%.
For companies, the tax payable will range from 19% to 24%. The first assessment year for such payments will be 2016.
The IRB’s statement is in line with both Section 4 of the 1967 Income Tax Act and the 2013 Guidelines on the Taxation of E commerce.
The move is seen as part of a bid to increase Malaysia’s revenue earnings by bringing the country’s growing internet technology-based business sector under its tax administration.