Have you thought about why has Malaysia taken the step towards implementing a Service Tax on digital services? The number of digital-based services offered by businesses to consumers has significantly increased in the past years. At present, around 95% of businesses worldwide benefit from high-speed internet connection (OECD, 2018). Besides that, reduction of the tax base of countries around the world due to Base Erosion Profit Shifting (“BEPS”) has worsened due to digitalization trends. These trends have also resulted in an unlevelled playing field between offline and online businesses.
There's more to know. Crowe Malaysia's Tax team has prepared a short and informative piece on the key things you need to know about the upcoming digital service tax.
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