Royal Malaysian Customs Department publishes guide on transmission and distribution of electricity services and guide on information technology services

Royal Malaysian Customs Department publishes guide on transmission and distribution of electricity services

The Royal Malaysian Customs Department published the guide on transmission and distribution of electricity services on 1 July 2020. The guide seeks to assist taxpayers in understanding the service tax treatment on the provision of electricity services.

The guide illustrates the following:

• terminology

• scope of tax

• service tax treatment on the provision of electricity services

• treatment of service tax on electricity services in designated area and special area

• frequently asked questions

• inquiry contact

Royal Malaysian Customs Department publishes guide on information technology services

The Royal Malaysian Customs Department published the guide on information technology services on 1 July 2020. The guide seeks to assist taxpayers in understanding the service tax treatment on information technology services. The service tax is a consumption tax governed by the Service Tax Act 2018 and its subsidiary legislation.

The guide illustrates the following:

• imposition and scope of tax

• terminology

• general operations of the industry and overview of information technology services

• charging service tax

• service tax treatment on information technology services

• exemption from payment of service tax (business-to-business exemption)

• treatment on imported taxable services

• responsibility of a registered person

• frequently asked questions

• inquiry contact

Source: Royal Malaysian Customs Department website, 1 July 2020