Im­ported on­line ser­vice tax to be in stages

The Star Malaysia - StarBiz - - News -

PUTRAJAYA: The process of im­ple­ment­ing new taxes on im­ported on­line ser­vices will be car­ried out in stages, says the Fi­nance Min­istry’s bud­get di­rec­tor Jo­han Mah­mood Mer­i­can.

He said the process would be­gin with im­ported on­line ser­vices in the busi­ness-to-busi­ness seg­ment, fol­lowed by the busi­ness-to-con­sumer seg­ment.

“This is to level the com­pet­i­tive play­ing field be­tween lo­cal and in­ter­na­tional com­pa­nies.

“As an ex­am­ple, US-based on­line video stream­ing com­pany Net­flix, which im­ports for­eign con­tent, is not taxed while lo­cal provider iflix has to pay taxes. This is un­fair com­pe­ti­tion,” he told re­porters af­ter at­tend­ing a spe­cial brief­ing on the Mid-Term Re­view of the 11th Malaysia Plan and 2019 Bud­get offi­cated by Deputy Com­mu­ni­ca­tion and Mul­ti­me­dia Min­is­ter Ed­din Sya­zlee Shith here yes­ter­day.

He said at the start, the gov­ern­ment would have en­gage­ments with on­line gi­ants to get them to reg­is­ter with the Royal Malaysian Cus­toms De­part­ment if they were in­ter­ested to con­tinue their ser­vices in Malaysia.

“Fur­ther de­tails on the tax im­ple­men­ta­tion, in­clud­ing the reg­is­tra­tion of com­pa­nies pro­vid­ing im­ported on­line ser­vices, will be an­nounced by the Cus­toms De­part­ment,” he added.

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