The 8% Withholding Tax and 6% Sales and Service Tax (SST) still remain as to comply with the Royal Malaysian Customs Department.
Why no more Digital Service Tax from Exabytes?
The local service provider who has paid Service Tax to a Foreign Service Provider (FSP) on imported digital services is allowed to claim a refund granted under section 34 (3)(b) Service Tax Act 2018 by the offsetting method based on the actual amount paid.
Reference: Service Tax Policy No 3/2020
What is Foreign Service Provider (PSP)?
Foreign service provider means any person who is outside Malaysia providing any digital service to a consumer and includes any person who is outside Malaysia operating an online platform for buying and selling goods or providing services (whether or not such person provides any digital services) and who makes transactions for provision of digital services on behalf of any person.
FSP who provides digital services to consumers in Malaysia and the value of digital service for a period of twelve months or less exceeds the threshold of RM500,000 is required to be registered.
For example: Google, Facebook, LinkedIn
Please contact us by email at firstname.lastname@example.org or call +6012 2377 286 for more clarification.
*You can click and learn more about Withholding Tax and Service Tax in Malaysia.
- Malaysia Customs Website on Digital Service Guide: Guide On: Digital Services
- Royal Malaysian Customs Department: Service Tax Policy
- Royal Malaysian Customs Department: Service Tax Policy on claiming a refund by offsetting method on service tax on imported digital service provided by foreign registered person
- Royal Malaysian Customs Department: Service Tax Policy No 1/2020 – Expansion of Scope of Taxable Service