Introduction

• 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.
• Registration of Tax Identification Number can be made through:
  • e-daftar
• Complete and submit Form e-B via e-filling.
• If business is a partnership:
  • Pay tax through ByrHASiL
  • 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.

Documents Needed

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