With the Internet-based sector’s continuous growth in Malaysia, the Ministry of Finance (MoF) is looking to tax online businesses next year.
According to Tan Sri Dr Mohd Serigar Abdullah, the Treasury Secretary-General, the MOF had requested the Inland Revenue Board (IRB) to conduct a detailed assessment of the matter.
“We need to tax these people who are also earning an income which is taxable.
“Otherwise, it will be revenue lost for the government with more and more businesses going into the sharing and digital economies,” he told reporters Bernama last week.
The IRB has formed an online business and commerce division, and is working with the Companies Commission of Malaysia (SSM) to conduct the evaluation.
“We are also interested in getting those undertaking online businesses to register with the SSM, to enable us to track how much they earn,” he added.[sc:sample_banner]
In another report on Free Malaysia Today, Hamzah Zainuddin, the Domestic Trade, Cooperatives and Consumerism Minister said, his ministry was in the process of drafting regulations involving all sales of items, including one-offs.
He said online sellers will need to be registered with SSM, even if it is to sell one product online, and the item must be sold within 30 days. Re-registration is required for another 30 days if the item is not sold within the first 30 days.
Other than online businesses, Irwan said part-time drivers for Uber/Grab should also be taxed, as revealed in a study by the Land Public Transport Commission (SPAD) where these drivers could earn up to RM7,000 per month.
The current taxable income is around RM3,000 to RM4,000 per month.