PlayStation Store to charge 6pc digital tax from Jan 1 in Malaysia

Sony has also clarified that the 6 per cent digital tax does not apply when you top up your wallet in the PlayStation Store. — SoyaCincau pic
Sony has also clarified that the 6 per cent digital tax does not apply when you top up your wallet in the PlayStation Store. — SoyaCincau pic

KUALA LUMPUR, Dec 27 — In line with Malaysia’s Service Tax (Amendment) Act 2019, Sony’s PlayStation Store will apply a 6 per cent SST to any purchasable items and subscription services on their platform. This will take effect from January 1, 2020 at 8am (Malaysian Time).

According to the announcement, the price update for items will be implemented between January 4 and 6, 2020 but you will see the final price with the 6 per cent tax on the check-out page starting next year.

Sony has also clarified that the 6 per cent digital tax does not apply when you top up your wallet in the PlayStation Store. Apart from the tax, there are no further changes for the PlayStation Plus subscription. At the moment, 1-month subscription costs RM29/month while an annual subscription is going for RM159/year.

To recap, the 6 per cent digital tax was first announced during the Budget 2019 budget announcement. It will cover all online services which include subscriptions for music, games, movie, software, enterprise solutions and even online advertising. When it was introduced, the tax for online services is aimed at levelling the playing field for local businesses and it is estimated that the Malaysian government will collect around RM2.4 billion each year. — SoyaCincau

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