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.