Be prepared to pay additional 6% tax on your favourite online streaming sites from 1st January 2020. The tax was announced during the 2019 Budget #Belanjawan2019.
Finance Minister Lim Guan Eng said that the tax is set to help bridge the gap between international and local businesses. By charging this tax, this levels up the competitiveness between the businesses, giving our local digital entertainment service providers and equal chance.
The Deputy Minister mentioned that a 6% rate was rather low in comparison to the other countries. Norway charges 25% on their tax while Russia implemented a total of 18% tax.
Bagi perkhidmatan atas talian yang diimport oleh pengguna, penyedia perkhidmatan asing akan dikehendaki berdaftar dengan Kastam, mengenakan dan meremit cukai perkhidmatan yang berkaitan berkuatkuasa mulai 1 Januari 2020.
— Ministry of Finance🇲🇾 (@MOFmalaysia) November 2, 2018
“They (digital service providers) should have no problem to pay…because it’s only 6%. If they can comply with Russia, Norway and New Zealand, I don’t see any reason why they should refuse to comply with the rate in Malaysia.” he said.
So our fellow Malaysians, enjoy your Netflix and Spotify tax free for the rest of the year.
Tell us what do you think about this tax? Do you feel is it necessary for an implementation of tax? Let us know in the comment section below.