Tax treatment on digital advertising
On 29 September 2017, the Inland Revenue Board of Malaysia (IRBM) has released a press statement to inform that the treatment of digital advertising payments would be determined based on the facts of the case and the Income Tax Act 1967. The IRBM also informed that they will not be issuing any specific provisions relating to the tax treatment of digital advertising.
Each case will be judged on the basis of the facts of its own case in determining whether a transaction is a royalty or service payment and whether it is subjected to withholding tax or other income categories.
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