{"id":17782,"date":"2019-04-08T20:00:00","date_gmt":"2019-04-08T12:00:00","guid":{"rendered":"https:\/\/www.comparehero.my\/blog\/uncategorized\/6-tax-on-digital-services-passed-1-jan-2020.html"},"modified":"2026-03-26T16:03:18","modified_gmt":"2026-03-26T08:03:18","slug":"6-tax-on-digital-services-passed-1-jan-2020","status":"publish","type":"post","link":"https:\/\/www.comparehero.my\/blog\/government-policy\/6-tax-on-digital-services-passed-1-jan-2020.html","title":{"rendered":"6% Tax on Digital Services passed, begins 1 Jan 2020"},"content":{"rendered":"\n<p>Remember the Digital Tax mentioned in the tabling of the <a href=\"https:\/\/www.comparehero.my\/budgets-tax\/articles\/budget-2019-new-taxes-malaysia\" target=\"_blank\" rel=\"noopener\">2019 Budget<\/a>? The bill has now passed in the Dewan Rakyat. The tax is set to be imposed on foreign digital service providers starting 1 January 2020.<\/p> \n<!--more--><p>Deputy Finance Minister Datuk Amiruddin Hamzah explained that the upcoming digital tax has a lower rate than that of other countries. He cited several countries as an example; Russia at 18%, Norway at 25%, and New Zealand at 15%. Digital service providers should not have any issues with the 6% tax and they are expected to foot the bill for it.<\/p> \n<p>The digital tax aims to bring more competition to the digital service field with local providers. The deputy finance minister further added that local digital service providers are already paying a tax and extending this to foreign providers is to simply level the playing field and encouraging competition.<\/p> \n<p>Foreign digital service providers must register with customs to be compliant with the tax. Digital service providers who do not do so can have legal action taken against them by the Malaysian government under the government-to-government (GTG) cooperation with countries that are under the Organisation for Economic Cooperation and Development (OECD).<\/p> \n<h2>Will prices of Netflix, Spotify, and Steam (among others) increase?<\/h2> \n<p>As stated, the deputy finance minister is expecting the digital service providers to pay for the additional 6% tax, though there is no final say on this.<\/p> \n<p>However, should the taxes be charged onto the users, these are pretty much the prices we are expected to pay for Spotify and Netflix (based on our assumptions):<\/p> \n<div class=\"jumbotron\"> \n <ul> \n  <li>Spotify, currently RM14.90 for Premium subscription; <strong>with 6% tax: RM15.80<\/strong><\/li> \n  <li>Netflix, currently RM51 for Premium subscription; <strong>with 6% tax: RM54.05<\/strong><\/li> \n <\/ul> \n<\/div> \n<p>As Steam does not have any subscription fee, we are not sure how the tax on that may work.<\/p> \n<p>It is interesting to note that <strong>our Spotify subscription is significantly cheaper than in the US<\/strong>, where it is USD $9.99 per month, which converts to a whooping RM40.90. You can read about that <a href=\"https:\/\/www.musicbusinessworldwide.com\/spotify-doesnt-cost-9-99-everywhere-and-thats-absolutely-fine\/\" target=\"_blank\" rel=\"noopener\">here<\/a>. Outside of taxes, Netflix is set to increase in price for all subscribers in May, <a href=\"https:\/\/www.polygon.com\/2019\/1\/15\/18183611\/netflix-subscription-price-increase\" target=\"_blank\" rel=\"noopener\">roughly up to 18% for all the different tiers<\/a>.<\/p> \n<p>What do you think &#8211; Will the 6% digital tax affect your digital consumption starting next year? Let us know!<\/p> \n<p><em>Source: Malay Mail, SoyaCincau<\/em><br> <\/p>\n","protected":false},"excerpt":{"rendered":"<p>Remember the Digital Tax mentioned in the tabling of the 2019 Budget? The bill has now passed in the Dewan Rakyat. The tax is set to be imposed on foreign digital service providers starting 1 January 2020.<\/p>\n","protected":false},"author":268230141,"featured_media":2191,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_coblocks_attr":"","_coblocks_dimensions":"","_coblocks_responsive_height":"","_coblocks_accordion_ie_support":"","_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_wpcom_ai_launchpad_first_post":false,"_jetpack_hide_featured_image":false,"_jetpack_featured_image_duplicate_dismissed":0,"_jetpack_feature_clip_id":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"{title}\n\n{excerpt}\n\n{url}","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":false,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2},"_wpas_customize_per_network":false,"jetpack_post_was_ever_published":false},"categories":[436],"tags":[],"class_list":["post-17782","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-government-policy"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v28.7 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>6% Tax on Digital Services passed, begins 1 Jan 2020 - CompareHero<\/title>\n<meta name=\"description\" content=\"Remember the Digital Tax mentioned in the tabling of the 2019 Budget? 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In last year\u2019s\u2026","rel":"","context":"In &quot;Wages &amp; Employment&quot;","block_context":{"text":"Wages &amp; Employment","link":"https:\/\/www.comparehero.my\/blog\/wages-employment"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/rpstagingdot.wpcomstaging.com\/wp-content\/uploads\/2019\/03\/image-21.png?fit=1024%2C768&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/rpstagingdot.wpcomstaging.com\/wp-content\/uploads\/2019\/03\/image-21.png?fit=1024%2C768&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/rpstagingdot.wpcomstaging.com\/wp-content\/uploads\/2019\/03\/image-21.png?fit=1024%2C768&ssl=1&resize=525%2C300 1.5x, https:\/\/i0.wp.com\/rpstagingdot.wpcomstaging.com\/wp-content\/uploads\/2019\/03\/image-21.png?fit=1024%2C768&ssl=1&resize=700%2C400 2x"},"classes":[]},{"id":18389,"url":"https:\/\/www.comparehero.my\/blog\/government-budget\/budget-2019-new-taxes-malaysia.html","url_meta":{"origin":17782,"position":2},"title":"New Taxation Rates In Malaysia According To Budget 2019","author":"CompareHero","date":"2 September 2019","format":false,"excerpt":"\u00a0 Budget 2019 was expected to be a burden with the introduction of the new taxes, plus the pre-budget warnings that it will be the most difficult budget ever. The new taxes include a soda tax, digital tax, as well as a departure levy - to name a few.\u00a0 New\u2026","rel":"","context":"In &quot;Government Budget&quot;","block_context":{"text":"Government Budget","link":"https:\/\/www.comparehero.my\/blog\/government-budget"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/rpstagingdot.wpcomstaging.com\/wp-content\/uploads\/2019\/09\/tax-1.png?fit=1024%2C768&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/rpstagingdot.wpcomstaging.com\/wp-content\/uploads\/2019\/09\/tax-1.png?fit=1024%2C768&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/rpstagingdot.wpcomstaging.com\/wp-content\/uploads\/2019\/09\/tax-1.png?fit=1024%2C768&ssl=1&resize=525%2C300 1.5x, https:\/\/i0.wp.com\/rpstagingdot.wpcomstaging.com\/wp-content\/uploads\/2019\/09\/tax-1.png?fit=1024%2C768&ssl=1&resize=700%2C400 2x"},"classes":[]},{"id":17946,"url":"https:\/\/www.comparehero.my\/blog\/government-budget\/budget2020-what-can-we-expect.html","url_meta":{"origin":17782,"position":3},"title":"Budget 2020: What Can We Expect?","author":"CompareHero","date":"7 October 2019","format":false,"excerpt":"Hello Malaysia! We've entered October and it only means\u00a0that we get to see what's in store for us next year when Lim Guan Eng, our Minister of Finance presents the annual budget on October 11, 2019. 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Lim Guan Eng was, admittedly, speaking so fast that we had a hard time catching up. This budget announcement was heavy and carries three significant themes: Institutional Reforms People's Well-being Pollution & Entrepreneurial Culture The total budget\u2026","rel":"","context":"In &quot;Government Budget&quot;","block_context":{"text":"Government Budget","link":"https:\/\/www.comparehero.my\/blog\/government-budget"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/rpstagingdot.wpcomstaging.com\/wp-content\/uploads\/2019\/10\/image-4.png?fit=1024%2C768&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/rpstagingdot.wpcomstaging.com\/wp-content\/uploads\/2019\/10\/image-4.png?fit=1024%2C768&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/rpstagingdot.wpcomstaging.com\/wp-content\/uploads\/2019\/10\/image-4.png?fit=1024%2C768&ssl=1&resize=525%2C300 1.5x, https:\/\/i0.wp.com\/rpstagingdot.wpcomstaging.com\/wp-content\/uploads\/2019\/10\/image-4.png?fit=1024%2C768&ssl=1&resize=700%2C400 2x"},"classes":[]},{"id":17807,"url":"https:\/\/www.comparehero.my\/blog\/tax-planning\/7-tax-exemptions-malaysia.html","url_meta":{"origin":17782,"position":5},"title":"7 Tax Exemptions in Malaysia You Should Know About","author":"CompareHero","date":"25 July 2019","format":false,"excerpt":"[Updated 29th April 2019] Tax season can be a stressful time for anybody, especially if you have other things on your plate. If you\u2019re already juggling your bills, groceries, and other housing expenses, finding out that you owe the government back taxes can be a real nightmare. What you may\u2026","rel":"","context":"In &quot;Tax Planning&quot;","block_context":{"text":"Tax Planning","link":"https:\/\/www.comparehero.my\/blog\/tax-planning"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/rpstagingdot.wpcomstaging.com\/wp-content\/uploads\/2026\/02\/7-tax-exemptions-in-malaysia-2019.jpg?fit=1200%2C628&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/rpstagingdot.wpcomstaging.com\/wp-content\/uploads\/2026\/02\/7-tax-exemptions-in-malaysia-2019.jpg?fit=1200%2C628&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/rpstagingdot.wpcomstaging.com\/wp-content\/uploads\/2026\/02\/7-tax-exemptions-in-malaysia-2019.jpg?fit=1200%2C628&ssl=1&resize=525%2C300 1.5x, https:\/\/i0.wp.com\/rpstagingdot.wpcomstaging.com\/wp-content\/uploads\/2026\/02\/7-tax-exemptions-in-malaysia-2019.jpg?fit=1200%2C628&ssl=1&resize=700%2C400 2x, https:\/\/i0.wp.com\/rpstagingdot.wpcomstaging.com\/wp-content\/uploads\/2026\/02\/7-tax-exemptions-in-malaysia-2019.jpg?fit=1200%2C628&ssl=1&resize=1050%2C600 3x"},"classes":[]}],"jetpack_featured_media_url":"https:\/\/i0.wp.com\/rpstagingdot.wpcomstaging.com\/wp-content\/uploads\/2026\/02\/6-Digital-Tax-1-Jan-2020.jpg?fit=1200%2C628&ssl=1","_links":{"self":[{"href":"https:\/\/www.comparehero.my\/blog\/wp-json\/wp\/v2\/posts\/17782","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.comparehero.my\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.comparehero.my\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.comparehero.my\/blog\/wp-json\/wp\/v2\/users\/268230141"}],"replies":[{"embeddable":true,"href":"https:\/\/www.comparehero.my\/blog\/wp-json\/wp\/v2\/comments?post=17782"}],"version-history":[{"count":1,"href":"https:\/\/www.comparehero.my\/blog\/wp-json\/wp\/v2\/posts\/17782\/revisions"}],"predecessor-version":[{"id":58115,"href":"https:\/\/www.comparehero.my\/blog\/wp-json\/wp\/v2\/posts\/17782\/revisions\/58115"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.comparehero.my\/blog\/wp-json\/wp\/v2\/media\/2191"}],"wp:attachment":[{"href":"https:\/\/www.comparehero.my\/blog\/wp-json\/wp\/v2\/media?parent=17782"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.comparehero.my\/blog\/wp-json\/wp\/v2\/categories?post=17782"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.comparehero.my\/blog\/wp-json\/wp\/v2\/tags?post=17782"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}