Malaysia: Implemented Service Tax (Amendment) (No. 2) Regulations 2019

On 1 January 2020, the Malaysian Ministry of Finance implemented the Service Tax (Amendment) (No. 2) Regulations 2019. According to the new regulation, registered foreign service providers are required to charge a 6% digital service tax on digital services offered to Malaysian consumers. Foreign digital service providers are required to register, if, over the course of twelve months, the digital services provided by them to Malaysian consumers exceed the value of MYR 500'000. If the foreign digital service provider is a platform, digital services by other foreign service providers provided through the platform are added to the sum.