English
Malaysia: Registration for foreign digital service providers starts Oct 1
BANGI: The registration process for foreign digital service providers with the Royal Malaysian Customs Department started on Tuesday in preparation for next year’s implementation of digital service tax, said Deputy Finance Minister Datuk Ir Amiruddin Hamzah.
The Finance Ministry according to him, was confident that foreign companies would cooperate and register to safeguard their reputation.
“Many are asking whether the foreign digital service provider companies will voluntarily register with us and pay the tax as required.
“Big names, without having to say who they are, will be facing bad publicity if they are not registered,” he told reporters after opening Tax Awareness Camp here on Tuesday.
Also present during the opening ceremony were Inland Revenue Board chief executive officer Datuk Seri Sabin Sabitah and the Education Ministry’s School Management Division director Datuk Mohd Jamil Mohamed.
According to the Finance Ministry, the digital tax set to be imposed beginning Jan 1 next year is aimed at creating a level playing field in the digital sector.
Amiruddin also said the registration by foreign digital service providers that meet certain criteria outlined by the Royal Malaysian Customs Department is important.
It would enable them to continue to provide services to Malaysian consumers following the introduction of the tax, he said.
The government is planning to impose a digital service tax of six per cent on foreign digital service providers from Jan 1,2020,
In the meantime, Amiruddin also said the ministry was confident that IRB would achieve the RM150 billion tax collection target this year based on the board’s current collection.
“Although the target may change slightly under certain circumstances, IRB is currently on the right track as the collection is slightly higher than the RM137 billion tax collected last year, ” he said.
On the Tax Awareness Camp, the deputy minister said it was a great platform for the young generation to become tax literate and understand their tax needs as well as fulfil their responsibility when they join the workforce or the business world.
Jointly organised by IRB and the Education Ministry, the five-day camp at Malaysian Tax Academy here involved the participation of 92 Form Six students and 30 teachers from all over the country. – Bernama
Source: https://www.thestar.com.my/business/business-news/2019/10/01/registration-for-foreign-digital-service-providers-starts-oct-1#8Fv3Vd1dXUyWsAzg.99