The Ministry of Finance (MOF) is looking to begin taxing online businesses as soon as next year. Treasury Secretary-General Tan Sri Dr Mohd Serigar Abdullah said that the MOF had requested the Inland Revenue Board (IRB) to conduct a thorough evaluation of the matter.
The IRB has established an online business and commerce division, and is working with the Companies Commission of Malaysia (SSM) to conduct the evaluation. Serigar added that the MOF is interested in getting those conducting online business to register with the SSM to better track their income.
“We need to tax these people who are also earning an income which is taxable. Otherwise, it will be revenue lost for the government with more and more businesses going into the sharing and digital economies,” he told reporters after delivering his key note address at the Financial Reform for Economic Development in Asia Public Sector Forum 2016.
The SSM is already drawing up regulations to get those who sell goods online to register with the government. While the regulations have yet to be revealed, it is understood that the sale of any item over the internet – no matter how trivial – will have to registered.
[Source: Bernama]
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