• Digital Business is a term used to refer to an economy activity based on the use of digital technology. Any transactions conducted through digital technology, including the providing of information, promotion and advertising, marketing, supply / delivery of goods / services, even though payment and delivery relating to such transaction may be conducted offline.
  • Individual / Company involves in Digital Business will be taxed under Income Tax Act 1967.

Responsibilities Of Individual/Company involves in Digital Business

  • Every Individual/Company must have an income tax file number:
    • Declare all income received include Digital Business activities.
    • Registration of Income Tax Reference Number can be made through e-daftar or;
    • the nearest IRBM.
  • Complete and submit Form e-B via e-filling.
  • If business is a partnership:
    • Complete and submit Form e-P via e-Filing (responsibility of managing partner) and e-B
    • Submit Form e-P without partnership's account
  • If partnership cease operation / changes to sole proprietorship / becomes a sendirian berhad company, inform in writing to LHDNM.
  • Pay tax through ByrHASiL

Required Document to Be Kept

Keep documents, records and business account as below for 7 Years

  • Statement from payment gateway (Paypal, ipay88, MOL, etc)
  • Domestic and personal expenses
  • Bank statement
  • Income statement from advertising company (such as Nuffnang, Google Adsense, etc)
  • Sale invoices and purchase records
  • Confirmation of sales and purchases via e-mail, etc
  • Agreement
  • Original receipts for each deduction / expense claimed, etc

No Sector Business description Flow of activities
Retailing Dropship, Agent, Stockist etc. Taking orders, packing, receiving payment, delivery.
Transport & Logistic e.g Poslaju, Gdex, Nationwide, Skynet, Air Asia, Car Rental, Online ticketing etc. Order for services, payment, insurance, delivery.
Financial Services Bank, Payment gateway, Crypto currency, credit card, debit card, loyalty card, membership card etc. Validating financial status, issue statement.
Manufacturing & Agriculture 3D Printing etc. Taking orders, packing, receiving payment, delivery.
Education ebook, online tutor, online tutorial etc. Taking orders, packing, receiving payment, delivery.
Healthcare Healthcare products. Healthcare products.
Broadcasting & Media eg. Youtube photography (services as photographer & selling image) etc. Content creation, uploading, receive payment.
Sharing Economy Sharing car, house, room, bikes, etc. Order for services, payment
Subscription Comic online, newspaper online, video streaming, audio streaming etc. Registration, payment.
Services Infrastructure and software as services, event management, wedding planner etc. Order for sevices, payment.
Advertisement Bloggerinstafamousinsta review. Content creation, uploading, payment
Crowd Sourcing Contoh: Content creation, create prototype, uploading, receive fund / payment.
Selling of Digital Product Data, ebook, apps. Content creation, uploading, payment.
Cryptocurrencies Trading in cryptocurrencies. Trader, Seller, Miner.


Allowable Non-Allowable

Expenses incurred in the production of business income.

  • Wages / salaries
  • Employee's EPF / SOCSO
  • Business insurance (burglary)
  • Business premises rental
  • Interest on business loan
  • Domain annual fees
  • Server rental


Domestic and private expense.

  • Personal electricity & water supply bill, children's education fees and depreciation

Purchase of personal assets.

  • Car
  • House
  • Furniture

Business initial expenses.

  • SSM registration
  • Registration fees of domain name / server

Capital allowance on business assets are claimable and will be deducted against adjusted income.

Type of Allowance Type of Asset Rate
Initial Allowance All types of asset
20 %
Annual Allowance Computer and ICT Equipment
40 %
Motor vehicles, heavy machinery
20 %
Plant and machinery
14 %
Peralatan pejabat, perabot dan lekapan dan lain-lainOffice equipment, furniture and fittings and others
10 %