Budget 2020 Update on Service and Withholding Tax Treatment for Digital & e-Commerce Industry

INTRODUCTION

Beginning 1 January 2020, the Malaysian government will be imposing the digital service tax (DST) in Malaysia, applicable on all digital services imported by consumers in Malaysia under the Business-to-Consumer (B2C) regime.

This move was in line with the Government’s plan to level the playing field in Malaysia between local and foreign suppliers. The announcement regarding the digital service tax in Malaysia was made during the 2019 Budget reveal. Aside from levelling the playing field, this move towards imposing taxes on the digital economy follows suit with what several other countries worldwide are already doing.

The introduction of the digital service tax in Malaysia will now mean that any service which is delivered or subscribed over the internet or other similar electronic networks which is provided by either a foreign or local registered person to any consumer will be liable for taxes.

OBJECTIVES

At the end of the workshop, participants will be able to understand:

  • The latest developments on service tax and withholding tax in Budget 2020
  • The types of payments subjected to service tax and withholding tax
  • How and when payment to non-residents are subjected to withholding tax
  • What the penalties are for non-compliance
  • The latest issues related to imported service as per Budget 2020.
  • METHODOLOGY

    The training workshop essentially comprises four main sessions with interactive discussion. Understanding the importance of service Tax and Withholding Tax Service and withholding tax implication on Digital, e-Commerce and Information Technology companies.

    Interactive presentation, discussions and issues pertaining to the above industry.

    WHO SHOULD ATTEND?

  • Digital, e-Commerce and Information Technology Players
  • Accountants and Auditors, Tax Practitioners
  • Directors, Chief Financial Officers, Managers and Executives
  • Compliance Officers and Business Advisors
  • COURSE OUTLINE

    Topic
    Service Tax Treatment for Digital Services

  • Overview and what kind of services considered as Digital Service?
  • Who is considered as Foreign Service Provider?
  • Who is considered as Consumer in Malaysia?
  • Liability to be registered
  • Accounting for Tax - Issuance of Tax Invoice
  • Accounting Basis, Taxable Period
  • Payment and Penalty
  • Compliance and Enforcement
  • Service Tax Treatment for Information Technology Services (ITS) Latest Update

  • Service Tax treatment for Information Technology Services (ITS)
  • Exemption from payment of Service Tax Business to Business (B2B) Exemption
  • Responsibilities of ITS provider under B2B exemption
  • Service on Imported Services
  • Treatment on Imported Taxable Services
  • Responsibility of a Registered Person
  • Withholding Tax Treatment for e-Commerce Business

  • Scope of charge, tax liability for Business
  • Treatment of server and website determining derivation of e-Commerce Income
  • Examination of Business Model
  • Withholding Tax on Royalty
  • Tax liability for Special Classes of Income
  • Issues of Double Taxation and Tax Treaties
  • Other Issues

  • Tax Treatment on Digital Advertising provided by a Non-Resident
  • How Does Withholding tax on Digital Advertising Provided by Non-Resident Affects Local Businesses?
  • Other digital services
  • Practical issues
  • TRAINER’S PROFILE

    Santhanasamy Subbiah has more than 30 years of experience in corporate world on accounting and finance practices. His experiences in various industries include that of Banking, Manufacturing, Education, Insurance, Security, Plantation, Shipping, Shared Services and Freight Forwarding. He was also with the Ministry of Works engaged in special projects funded by the World Bank.

    Besides being in the corporate world he has lectured MBA programmes for the following Universities:- Open University Malaysia, University of New Castle Australia, Herriot Watt University UK, Asia Pacific International University and was a Dean for the School of Accounting and Finance with a local University.

    As a self-starter with his vast experience in numerous industries he is today a trainer and a principal consultant on GST for numerous of companies. He is no novice to GST. He has worked closely with Price WaterHouse Coopers on matters pertaining to GST since 2005 and contributed valuable inputs during the meeting with Ministry of Finance on matters pertaining to the implementation of GST in Malaysia.

    His specializes on the Understanding, Implementation and Hands-On training programs on Goods and Services Tax for numerous industries such as manufacturing, oil and gas, construction, logistic, retail, airlines, IPTA and many others. He is a GST trainer of Malaysian Institute of Accountants, Malaysian Institute of Insurance and Malaysia Institute of Corporate Governance.

    Santhanasamy holds an MBA majoring in Finance from University Putra Malaysia. He is a member of the Chartered Accountant of Malaysia, Chartered Management Accountant of UK, and an Associate Member of the Malaysian Institute of Management. He is a Certified Trainer of HRDF. He is a certified GST Tax Agent of Ministry of Finance.

    COURSE FEES

    Early bird fee: RM689 per person - Register by 24 October 2019

    Normal fee: RM795 per person – SBL claimable (Inclusive of lunch, tea breaks, notes, certificate of attendance and 6% SST)

    *Group discount of 10% available (for 3 or more participants from the same company)

    ORGANISER

    Malaysian Export Academy
    No. 86, Jalan BP 7/8,
    Bandar Bukit Puchong,
    47120 Puchong, Selangor.

    Tel : 03 8066 3107
    Fax: 03 8066 6152

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