Malaysia: Prohibition of digital services tax in United States-Malaysia Agreement on Reciprocal Trade
Progress
Current status
adopted
26 Oct 2025 adopted
Scope
Implementers
Malaysia
United States of America
Policy Area
Taxation
Policy Instrument
Direct taxes including Digital Service Taxes
Regulated Economic Activity
cross-cutting
Government Branch
executive
Government Body
central government
Implementation Level
bi- or plurilateral agreement
Timeline of events
United States and Malaysia signed Agreement on Reciprocal Trade including prohibition of digital services tax
On 26 October 2025, the United States and Malaysia signed an Agreement on Reciprocal Trade. The Agreement provides that Malaysia shall not impose digital services taxes discriminatory against US companies in law or in fact.
Event type
treaty
Action type
adoption
Government branch
executive
Government body
central government