Digital streaming site iflix has been paying the Goods and Services Tax (GST) since inception.
“iflix already charges, reports and pays Malaysian GST for all services and has been GST compliant since we first made our service available to consumers throughout Malaysia,” co-founder Patrick Grove told The Malaysian Reserve yesterday.
“We actually were surprised when they (the authorities) said we should pay GST. We have been paying GST since inception gladly,” he said.
On Tuesday, Royal Malaysian Customs Department DG Datuk Seri Subromaniam Tholasy said digital streaming companies such as Netflix and iflix will be taxed under the amendments to the GST Act.
There are an estimated 66,000 active streaming subscribers for Netflix in Malaysia and the number is forecast to reach up to 336,000 by 2020.