Malaysia is officially the second country in Southeast Asia (SEA) to introduce a Digital Tax which could apply to both local and international players. Slated to be implemented by 1 January 2020, the tax is aimed to level the playing field and spark better competition in its e-commerce sector.
This landmark announcement for the digital sector is highly significant as it was announced at the first federal budget tabled by a new government since the country’s independence in 1957.
More importantly, the announcement on the digital tax in Malaysia is expected to serve as a role model for neighbouring countries and beyond to introduce a tax scheme for its digital economy.
