Malaysian govt also considering taxing on e-commerce businesses

In its latest mid-term review of the 11th Malaysia Plan 2016-2020 report, the Malaysia government stated that it is considering imposing tax on online transactions, as e-commerce and activities related to sharing economy are on the rise.The government added that it is looking to continue diversifying its revenue by increasing the contribution of indirect taxes and non-tax revenue which include licenses, permits, fees and rentals. This comes after the sales and services tax replaced the goods and services tax on 1 September this year, and is being imposed on prescribed services called "taxable services".In a separate guide on advertising services, the government said that services such as advertising services provided by an advertising agency, a media owner or an individual person are subjected to a service tax at the rate of 6%. Among the list of advertiser communication platforms include newspapers, out-of-home platforms, mobile advertisements and TV.The guide added that the value of advertising services is based on the actual selling price chargeable to the advertiser. This comprises all costs incurred in typesetting, formatting, printing and necessary technology to have the advertisement fitted into any medium of communication.(Read also: Finance Minister Lim Guan Eng warns telcos to drop 6% SST for prepaid cards)(Photo courtesy: 123RF)