Malaysia: Implemented Service Tax (Digital Service) (Amendment) Regulations 2020

On 14 May 2020, the Malaysian Ministry of Finance implemented the Service Tax (Digital Service) (Amendment) Regulations 2020, under the authority of the Service Tax Act 2018 (Act 807). This amendment introduces a new provision, which specifies the tax treatment of digital services provided by foreign registered persons to companies within the same group in Malaysia. According to the amendment, digital services provided within the same group of companies are exempt from service tax, while services provided to other entities in Malaysia are subject to tax.