Malaysia: Issued RMCD Guide on Information Technology Services

On 8 March 2021, the Royal Malaysian Customs Department (RMCD) implemented the Guide on Information Technology Services. The Guide specifies that the provision of information technology services (ITS) are subject to a service tax of 6% according to the Service Tax Act 2018 (Act 807). The Guide states that foreign ITS providers are not subject to service tax, but instead to import service tax as regulated in the Guide on Imported Taxable Services. Beyond that, the Guide accounts for formalities as well as exemptions from such an import service tax.