Malaysia: Issued RMCD Guide on Digital Services by Foreign Service Providers (FSP)

On 1 February 2021, the Royal Malaysian Customs Department (RMCD) issued the Guide on Digital Services by Foreign Service Providers (FSP). The Guide specifies that any FSP must register as a foreign registered person (FRP) if the total value of digital services provided annually within Malaysia exceeds MYN 500’000 (ca. USD 100’000). Further, the Guide provides detailed information on what is considered a digital service or who can be an FSP. Beyond that, the Guide states that no digital service tax needs to be paid on services within a group of companies. The Guide also clarifies other issues, such as defining online platforms as well as the methods of calculating the value needed for registration.