Malaysia Implements 8% Service Tax Rate for Foreign Digital Service Providers

• Malaysia clarifies service tax rate increase on digital service providers
• Service tax rate for digital services provided by foreign registered persons (FRPs) will increase from 6% to 8%
• All digital service supplies to consumers will be taxed at 8% starting from 1 March 2024
• Transitional rules outlined in the Service Tax (Rate of Digital Services Tax) (Amendment) Order 2024
• Guidelines include provisions for service tax rates for digital services provided before and after the effective date
• Payment received before the effective date for services provided after will be taxed at the old rate of 6%

Source: regfollower.com

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.

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