Malaysia:GST likely for Netflix and iflix soon
SHAH ALAM- Online entertainment streaming services such as Netflix and iflix are expected to be taxed under the proposed amendments to the Goods and Services Tax (GST) Act which will include the digital economy, says the Customs Department.
Online entertainment streaming services such as Netflix and iflix are expected to be taxed under the proposed amendments to the Goods and Services Tax (GST) Act which will include the digital economy, says the Customs Department.
Director-general Datuk Seri T. Subromaniam said the latest amendments to the GST Act had been submitted to the Finance Ministry and are expected to be tabled in the Dewan Rakyat later this month.
“We need a modern, comprehensive and progressive taxation system to tax revenue from the digital economy,” Subromaniam said yesterday.
The Customs Department had proposed amendments to the GST Act that would include foreign companies that do online business with Malaysian customers.
On another matter, Subromaniam said he is optimistic of achieving its target of getting an additional RM1bil from GST in the last three months of the year.
He said with this, the department would meet its targeted GST collection of RM42bil for this year as part of its Key Performance Index.
“Last year, the department collected about RM41bil and we are confident that this year, we will exceed that amount.
“And to achieve this target, the department will place its officers who will be GST ambassadors or representatives at associations and chambers of commerce nationwide from Oct 15 until Dec 31,” he said after attending the 82nd Malaysian Customs Directors meeting yesterday.
Subromaniam said the move would help traders and company owners who had GST-linked problems, especially in making the correct declaration on the GST-03 statement.
“For a start, we will place our officers in the Klang Valley before extending to the rest of the country in stages, according to the needs and requests from the associations and chambers of commerce,” said Subromaniam.
He also reminded traders and company owners to make use of the opportunities provided by the department before stern action was taken against them for failing to declare their GST statements from Jan 1 next year.