ArrowArtboardCreated with Sketch.Title ChevronTitle ChevronEye IconIcon FacebookIcon LinkedinIcon Mail ContactPath LayerIcon MailMenu BurgerPositive ArrowIcon PrintIcon SearchSite TitleTitle ChevronIcon Twitter
Technology

Google to collect Malaysia's new 6% digital tax

Netflix, Spotify and other global platforms also face duty from January

Students check their smartphones at a university in Semenyih, outside Kuala Lumpur.   © Reuters

SINGAPORE -- Google will begin collecting a 6% tax on digital services in Malaysia starting next month, and most other foreign internet companies are expected to follow suit in response to a new duty taking effect in the Southeast Asian country.

"We always comply with the tax laws in every country we operate in, and we continue doing so as tax laws evolve," a Google spokesperson said.

Malaysia introduces a 6% tax in January on digital services like app downloads and video streaming from foreign providers that log above a certain amount of revenue in the country.

The move is designed to boost tax revenue and level the playing field for domestic retailers.

Google is expected to take similar measures in Singapore, which also launches a digital service tax in January.

Malaysia's new tax affects other global players like streaming media companies Netflix and Spotify Technology, meaning their customers could face larger bills if the platforms pass on the additional payment. But the duty is expected to have little impact on the local market shares of popular online services.

Sponsored Content

About Sponsored Content This content was commissioned by Nikkei's Global Business Bureau.

You have {{numberArticlesLeft}} free article{{numberArticlesLeft-plural}} left this monthThis is your last free article this month

Stay ahead with our exclusives on Asia;
the most dynamic market in the world.

Stay ahead with our exclusives on Asia

Get trusted insights from experts within Asia itself.

Get trusted insights from experts
within Asia itself.

Get Unlimited access

You have {{numberArticlesLeft}} free article{{numberArticlesLeft-plural}} left this month

This is your last free article this month

Stay ahead with our exclusives on Asia; the most
dynamic market in the world
.

Get trusted insights from experts
within Asia itself.

Try 3 months for $9

Offer ends January 31st

Your trial period has expired

You need a subscription to...

  • Read all stories with unlimited access
  • Use our mobile and tablet apps
See all offers and subscribe

Your full access to the Nikkei Asian Review has expired

You need a subscription to:

  • Read all stories with unlimited access
  • Use our mobile and tablet apps
See all offers
NAR on print phone, device, and tablet media