Google announces 6% digital tax for Malaysian users started next year

To be in compliance with Malaysia’s new Sales & Services Tax, Google will charge a 6% Services Tax to its users in the country, starting from January 1, 2020.

Google announces 6% digital tax for Malaysian users started next year | BEAMSTART News

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The 6% tax will be applicable on G Suite services and will be charged on user purchases and reflected under Billing & Payments.

Users will receive an email regarding any possible pricing changes.

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Besides digital advertising services offered by corporations like Google, the tax is expected to affect streaming services like Netflix and Spotify, and digital game distribution companies such as Steam.

Google Malaysia asked users to wait for further announcements for other services such as YouTube Premium, YouTube Music, and online purchases for digital items.

“We always comply with the tax laws in every country we operate in, and we continue doing so as tax laws evolve,” a Google spokesperson said.

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