Categories: Digital LifeNews

Facebook ads are subject to 6% digital tax in Malaysia

Facebook has announced that they will collect 6% service tax on the sale of ads in Malaysia starting 1st January 2020. This is in line with the introduction of service tax on digital services that was first announced last year.

According to Facebook’s notice, this will affect advertisers that have set their “Sold to” country on their business or personal address to Malaysia. The service tax will be added whenever you’re charged for the ad regardless if it is purchased for business or personal purposes.

The social media platform also mentions that if the payment for the ads is done manually, the tax will be applied when your ad account is funded. They gave an example if you’ve spent USD 100 for ads and if you’ve reached your USD 100 billing threshold, you will be charged USD 100 in ad cost with USD 6 (6%) service tax on top of that.

Both Google and AWS have made similar announcements for customers in Malaysia. From 1st January 2020, all digital services, including download/streaming of content, music, video, or digital advertising will subject to a 6% digital tax. The tax is aimed to level the playing field for local businesses and it is estimated that the Malaysian government will collect RM2.4 billion each year.

[ SOURCE ]

Related reading

Recent Posts

Vivo X200 series launching in Malaysia on 19th November 2024, pre-orders now open

Vivo has announced that it will be launching the Vivo X200 series in Malaysia on…

1 day ago

Samsung Galaxy A16 5G launched in Malaysia with 6 years of software updates

Samsung has just launched its latest budget-oriented smartphone, the Galaxy A16 5G here in Malaysia.…

2 days ago

Hold on a minute! Is Yes 5G giving you cashback to lower the cost of your iPhone 16?

This post is brought to you by Yes 5G. If you’ve been eyeing the latest…

2 days ago

RedMagic 10 Pro: Snapdragon 8 Elite powered gaming smartphone with huge 7,050mAh battery

Not too long after launching the RedMagic 9S Pro in Malaysia, the gaming brand under…

2 days ago

Oppo Find X8 and X8 Pro are the first global smartphones powered by MediaTek Dimensity 9400

The Oppo Find X8 series will be launching globally on 21st November 2024 and Malaysia…

2 days ago

Kia to introduce EVs priced below RM160K for emerging markets

During the recent 2014 Kia EV Day APAC, the Korean carmaker unveiled four new electric…

3 days ago

This website uses cookies.