Amendments to GST to tax digital companies 

By P PREM KUMAR AND MARK RAO / Pic By MUHD AMIN NAHARUL

The government will table amendments to the Goods and Services Tax (GST) Act which enable authorities to collect “a few billion ringgit” in taxes from foreign digital platforms that are providing services in the country.

Royal Malaysian Customs Department Director-General Datuk Seri Subromaniam Tholasy said the amendments to the GST Act are expected to be tabled during the Dewan Rakyat sitting in October.

“One of the requirement is for our tax laws to have permanent establishment (PE) clause,” he told reporters on the sidelines of GST Conference 2017 in Kuala Lumpur today.

 
He said foreign digital companies with supply base or PE in Malaysia will be subject to GST after the amendments. Foreign digital platforms operating in Malaysia include Facebook, Uber, Google, AirBnB and Grab.
 
The authorities are expected to register the digital platform service providers which generate revenues from their activity in the country.