Netflix & iflix Subscribers May Be Charged GST Soon
The Malaysian government is planning to tax online streaming services such as Netflix and iflix, reports The Star, following proposed amendments to the Goods and Services Tax Act.
According to Customs director-general T. Subromaniam, the Finance Ministry has received the latest amendments to the act and are expected to be tabled in the next Dewan Rakyat sitting.
“We need a modern, comprehensive and progressive taxation system to the tax revenue from the digital economy,” he said.
At writing time, Malaysians do not have to pay GST when they purchase products from e-commerce sites.
Shortly, iflix issued a statement saying the streaming service was already subject to the GST.
“iflix already charges, reports and pays Malaysian GST for all services and has been GST compliant since we first made our service available to consumers throughout Malaysia,” it said.