Malaysian Finance Minister, Lim Guan Eng, recently announced the new Budget 2019 and among his announcements, an interesting point to note would be that “Online service providers will be taxed from 1 January 2020 to boost the competitiveness for local Malaysian companies.” In other words, services like Spotify and Steam will be taxed starting from 2020.
Frankly, digital taxes have been in effect in many countries for a while now but will be a new introduction in Malaysia. However, the format in which this digital tax takes place varies by country. In some countries, the tax is paid by the company providing the service whereas more commonly in others, the tax is paid by the consumers using the service.
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