25 Sept 2017
MALAYSIA: Overseas E-Commerce Companies to be Taxed on Malaysian Transactions
Malaysia-based transactions by overseas digital service providers, including e-commerce operators, will become taxable once proposed amendments to the country’s relevant tax laws are enacted. Currently, only digital service providers registered in Malaysia are liable to be taxed.
While the move is seen as part of a bid to increase Malaysia’s revenue earnings by bringing overseas internet technology-based service providers under its tax administration, it is unclear how the Malaysian government will enforce tax compliance by companies located outside the country.
No date has yet been announced for the implementation of the new regime, though the proposed amendments are expected to be initiated during the next session of Malaysia’s parliament in October 2017.