Service Tax on Imported Services For Digital Marketing Services

With effect from 1 January 2019, Perkhimatan Bercukai Diimport (PBD) is subjected to service tax, 6%.

Any individual who operates a business in Malaysia (Including those in Kawasan Ditetapkan(KD) and Kawasan Khas (KK)) and obtains taxable services from overseas service providers are required to pay service tax.

The term ‘any individual’ refers to all registered and unregistered business under the Service Tax Act 2018.

Perkhidmatan Bercukai Diimport (PBD) refers to taxable services under the First Schedule, Service Tax Act 2018. Overseas service providers that provide services in terms of merchandise, land or others related to Malaysia or for any individual residing in Malaysia.

Please take note that all media budget for services related to Google, Facebook and LinkedIn will be subjected to this tax.

For more information, kindly refer to the attached RMCD’s Guides Jabatan Kastam Diraja Malaysia (2019, January 9) or visit MySST portal for more detailed information and further updates on the above matters.

Thank You

Regards,
Nexus Mediaworks Group of Companies