Image courtesy of Bernama and Malaymail
The Service Tax (Amendment) Bill 2019 has been passed earlier today, allowing for the taxation of digital services such as Netflix, Spotify, Steam and more provided by foreign entities by as much as 6%.
The taxation is expected to come into full force starting 1 January 2019, next year. Based on a statement at the Dewan Rakyat, “Online services imported by users and foreign service providers will need to have their service approved by Customs next year.”
Not only will this increase the cost of consumer-focused services by as much as 6%, but it could also increase the operational cost of certain industries that utilize foreign subscription services such as Adobe Creative Cloud which includes essential applications such as Adobe Premiere Pro CC, Adobe Photoshop CC and Adobe Illustrator. Google subscription service to increase Google Drive space and more. For more updates like this, stay tuned to TechNave.com.
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