Malaysian Adobe Creative Cloud users will have to pay 6pc extra for digital tax

Adobe’s six per cent Sales and Services Tax is in accordance with the Service Tax (Amendment) Act 2019 where digital services will be taxed. — Picture via SoyaCincau
Adobe’s six per cent Sales and Services Tax is in accordance with the Service Tax (Amendment) Act 2019 where digital services will be taxed. — Picture via SoyaCincau

KUALA LUMPUR, Dec 16 — Beginning January 1, 2020, Adobe will be applying a six per cent Sales and Services Tax on its digital services for Malaysian users.

This is in accordance with the Service Tax (Amendment) Act 2019 where digital services will be taxed.

According to Adobe, the future statement will reflect the new tax rate and it will not affect the base price of your current subscription.

Their FAQ states that it will only affect billing starting in January 2020. If you’ve prepaid for an annual plan, the SST goes into effect on your next plan renewal.

At the moment, Adobe Creative Cloud for all apps for a single user costs RM236/month for the annual plan and it will cost RM2,664 if you prepay for the full year. On a normal month by month subscription, it costs RM353/month.

With the six per cent tax, the monthly subscription on an annual plan will cost RM250.16, which is an RM14.16 increase per month.

The six per cent tax for digital services was confirmed during the recent Budget 2020 announcement and it will cover all digital services from January 1, 2020.

Other companies including GoogleAWS and Facebook have made similar announcements for Malaysian users. — SoyaCincau

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