The Royal Malaysian Customs Department (RMCD) issued a written decision (in the form of a service tax ruling) in August 2021 indicating that services provided between a branch and its headquarters can be within the scope of service tax. As described further below, although the decision is being appealed, it is important for businesses to be aware of the decision because it appears to represent a significant shift in the RMCD’s position regarding the service tax treatment of services provided by a nonresident headquarters entity to a Malaysian branch.
Source Deloitte
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