All agencies in Malaysia have received a notification from customs about the new rule.
Until now, a five per cent tax was levied on advertising services, which did not include production services. This new law is expected to increase the production cost of commercials for clients in Malaysia and there is a fear that international clients will shift production to neighbouring countries due to the cost advantage.
Until now, a five per cent tax was levied on advertising services, which did not include production services. This new law is expected to increase the production cost of commercials for clients in Malaysia and there is a fear that international clients will shift production to neighbouring countries due to the cost advantage.
It is believed that the country’s 4As is in discussion with customs authorities regarding this new regulation.
