BUDGET 2019 | Digital services offered by foreign companies will be subjected to taxes from Jan 1, 2020, in a bid to level the playing field with local companies.

Details are scant at the moment but a slide provided by the Finance Ministry has suggested that popular streaming services such as Netflix and Spotify, along with gaming platform Steam, would be subjected to the tax.

Finance Minister Lim Guan Eng's Budget 2019 speech said foreign digital service providers must register with the customs department and be subject to a service tax.

"Examples of services includes software, music, video and any digital advertising," said Lim.

"Such taxes will level the playing field between physical shops and online service providers, especially those owned by foreign companies."