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Friday, 6 October 2017

#Google #Amazon #GrabCar #Uber #Airbnb which were earning a lot of money in Malaysia but not taxed.

Malaysia: Amendment to the Goods and Services Tax Act 2014 will enable Malaysia to tax major online business platforms, the Finance Ministry said today.
Second Finance Minister Datuk Seri Johari Abdul Ghani said the proposed amendment, to incorporate digital economy, will not affect small-time online business owners.
He said among the companies the ministry was looking at were Google, Amazon, GrabCar, Uber and Airbnb which were earning a lot of money in Malaysia but not taxed.
He said the move was meant to create level playing field among companies operating in the country.
Johari said it was important to fix "these imbalances" as 17 per cent of the Malaysian economy, worth a total RM1.3 trillion, originated from the digital economy sector.
"The mechanism is still a work in progress as even OECD (Organisation for Economic Co-operation and Development) countries, where the technology originated from, are not able to find the right solution to tax them."
"Meanwhile, enjoy the technology you have. No one is stopping you, so you don't have to worry.
"Small-time online business operators can also go ahead...We are not going to tax them," he said, after attending the Jeffrey Cheah Foundation scholarship presentation ceremony, here today.
Johari added that it was unlikely that the amendment would be tabled in the upcoming parliamentary session.
He reiterated that this was because the ministry was still getting references from OECD countries before coming up with the suitable mechanism.
Recently, Custom Department director-general T Subromaniam said that the GST Act will be amended to enable the government to collect billions of ringgit in taxes from foreign companies operating here under the digital economy.
He said the proposal for the amendment to the GST Act was still being discussed with the finance ministry and relevant authorities.
Meanwhile, Johari said the revision of Malaysia's Gross Domestic Product (GDP) from 4.9 per cent to 5.2 per cent by the World Bank was based on the economic achievements recorded in the first quarter.
"The momentum is also good and that is the reason why they have revised the yearly outlook for Malaysia.
"For now, we have to look at the third quarter to see whether the forecast is good." he added.
Johari said the government would announce the revision of the GDP forecast during the Budget 2018 announcement at the end of the month.

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