Customs looks to amend laws to tax foreign digital service providers

KUALA LUMPUR: The Royal Malaysian Customs Department (RMCD) is looking at amending some tax laws in order to tax foreign digital service providers.
RMCD director general Datuk Seri Subromaniam Tholasy said it is aiming to table a proposal to amend the GST Act 2014 at the next Parliamentary session.
Speaking to reporters at the GST Conference 2017 today, he said foreign companies based outside of Malaysia providing services in Malaysia are currently not taxed, unlike local service providers who have to register for GST.
He said RMCD could collect "couple of billions" from taxing the digital economy and is currently in discussions with the Finance Ministry on amending the tax laws. He said the industry would also be consulted.