Malaysia To Legislate To Slap GST On Foreign Retailers,
by Mary Swire, Tax-News.com, Hong Kong
Thursday, September 21, 2017
Malaysian authorities are developing draft legislation to level the tax playing field between online retailers and domestic bricks and mortar retailers.
"Foreign digital service providers receive direct payment for their services but they are not taxed. Once provisions are amended, we have a legal basis to tax them," said Customs Department Director-General T Subromaniam at a conference in Kuala Lumpur on September 18.
Introducing tax on foreign retailers and e-commerce platforms will raise billions in revenues, he said, with the Government expecting to report revenues of at least MYR42bn (USD10bn) from the tax this year.