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Malaysia Announces Measures to Reduce Issues of Double Taxation in Relation to Services Tax on Digital Services

02 January 2020

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Approved Changes

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Malaysia

Malaysia's Ministry of Finance has issued a release on measures to reduce double taxation issues in relation to services tax on digital services supplied by non-resident service providers, which has applied for B2B services since 1 January 2019 and was extended to B2C supplies with effect from 1 January 2020. Five measures in particular are explained in the release: The group relief facility is extended to the import of digital services, which provides that local service providers do not need to be taxed on otherwise taxable services imported for foreign providers in the same group; An exemption is provided from...