Imported Taxable Services

Effective 1 January 2019, any person importing a taxable service into Malaysia for the purposes of business is required to file a return and pay the service tax in respect of the service imported.

The challenge for a business would be assessing the nature of the services it imports and determining whether they are taxable. This can be done as an initial exercise, but maintaining an updated list of imported services and the relevant service tax treatment is crucial. 

It should be noted that in some cases, both service tax and withholding tax can apply on the same service.

The 'company within the same group of companies' concession would generally apply to imported services, however the B2B exemption would not.

Any business importing taxable services is required to register an account with the Customs department.

Filing & Payment

Service tax registrants can file imported taxable services in their existing service tax returns.

Other persons importing taxable services must account for and pay the tax on a monthly basis.

 

How We Can Help

Below are the main services we provide in respect of imported taxable services. We also offer bespoke services, so if these do not meet your needs, please contact us for further discussion.

  • Imported Services Briefing / Training
  • Assessment of the applicability of tax to your imported services
  • Assessment of the 'company within the same group of companies' concession
  • Assistance with Customs audit

Contact us

Raja Kumaran

Tax Executive Director and Indirect Tax Lead, PwC Malaysia

Tel: +60 (3) 2173 1701

Yap Lai Han

Tax Executive Director, PwC Malaysia

Tel: +60 (3) 2173 1491

Chan Wai Choong

Tax Executive Director, PwC Malaysia

Tel: +60 (3) 2173 3100

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