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Malaysia Service Tax

Malaysia Service Tax

The service tax on digital services (SToDS) is added on advertising costs at a rate of 6%.

Effective 1 January 2020, Microsoft Advertising is required to charge the Malaysia service tax on digital services (SToDS) for businesses registered in Malaysia. Microsoft Advertising is required to charge 6% service tax. (Note: tax rate is subject to change.)

Microsoft Advertising cannot provide guidance on tax. Please contact your tax advisor or local tax office if you have questions.

How is the service tax applied to my account?

  • If you have a postpay threshold or monthly invoice account, the 6% digital service tax will be added as a percentage of your net charges. For example, you would be assessed RM6 MYR if you generated RM100 MYR in advertising charges. Learn about billing thresholds.
  • If you have a prepay account, some of your prepay funds will go towards taxes. For example, if you added RM100 MYR to your prepay account, RM5.66 MYR would cover taxes and the remaining RM94.34 MYR would cover advertising charges.

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