Google Gearing Up To Charge 6% Digital Tax In Malaysia

digital tax

Starting 1 January 2020, Google Malaysia G Suite services will include a 6% digital tax.

The company spokesperson issued a public statement confirming the tax to be imposed on user purchases next year.

The Service Tax (Amendment) 2019 Bill was approved by Dewan Rakyat on April 8 this year to introduce tax on foreign-registered persons providing digital services to consumers in the country.

Further, the implementation of the service tax had also been highlighted during the tabling of Budget 2020, earlier this October.

For now, Google will be charging the tax on G Suite services where the tax will be listed under Billing & Payments.

Users can expect an email announcing the pricing changes, should there be an increase in pricing for other services such as YouTube Premium, YouTube Music, and Google Play.

The digital tax also covers streaming services like Netflix and Spotify, digital advertising such as Facebook, as well as digital software and games distribution companies such as Steam.

Digital services that will be impacted by the 6% digital tax are:

  •       Software
  •       Application
  •       Videogames
  •       Music and film streaming services
  •       Subscription-based media
  •       Database and cloud storage services
  •       Advertising and online platform
  •       Search engines
  •       Social networks

How much do you know about the Digital Tax coming in 2020? How is it going to impact you? Read all about it here!


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