Service tax on digital services: Taxing beyond its remit?

PwC Malaysia tax director Tim Simpson.

ON Jan 1 Malaysia implemented a service tax on digital services provided by Foreign Service Providers (FSPs) to Malaysian consumers. This is a tax framework we have seen implemented in several countries in the region, with more likely to follow.

Australia and New Zealand have had a similar tax in force for over a year now, while Singapore launched their variant at the same time as Malaysia.