Digital tax hits Facebook in Malaysia too, 6% charge applied to ads beginning 1st Jan 2020


As a wise man once said, nothing in this world can be said to be certain, except death and taxes. Malaysia's digital tax, as outlined in Budget 2020, is going to affect many companies next year. Google recently confirmed that all its digital services will have the tax applied and now Facebook is next on the chopping block, so to say.

Facebook has announced that starting from 1st January 2020, the 6% digital tax will be applied to Facebook ads. To be exact, this tax will apply to all advertisers that are selling their ads to Malaysia or are based here in Malaysia. For people who opt for manual payment, the tax will be applied when you top-up your ad account. In terms of numbers, the 6% will be applied directly on your total ad cost. So if want to spend RM100 for an ad boost, expect to have a nice RM6 added to the charge.

To those who will be affected by this, do you expect this to have a major impact on your ad spending? Do let us know on our Facebook page. Also, stay tuned to for more news like this.