Foreign-registered digital service providers are required to register with the Royal Malaysian Customs Department for easier collection of the six percent service tax beginning January next year.

Deputy Finance Minister Amiruddin Hamzah said registration will be open from Oct 1 until Dec 31 this year.

“We hope the big players, the likes of Netflix and others will register and pay (the services tax), which is not high compared to rates in other countries.

“We proposed six percent so that there will be a level playing field between the domestic service providers which are already paying six per cent,” he said.

Amiruddin told reporters this after delivering a speech at the Kuala Lumpur International Financial Forum (KLIFF) 2019 here today.

Yesterday, the Dewan Rakyat passed the Service Tax (Amendment) Bill 2019 aimed at ensuring a balanced ecosystem.

During the tabling of 2019 Budget on Nov 2 last year, Finance Minister Lim Guan Eng reportedly said the government would impose and remit tax on digital service providers including software, music, video or any other digital advertisements beginning January 2020.

- Bernama