Beginning 1 January 2020, Facebook ads in Malaysia are subject to a 6% service tax. This affects advertisers whose “Sold To” country on their business or personal address is set to Malaysia.
The service tax is added whenever you’re charged for your ads regardless of whether you’re purchasing Facebook ads for business or personal purposes. If you pay for Facebook ads with a manual payment method, the tax will be applied when your ad account is funded.
As an example, let’s say that you were recently charged RM100 because you reached your RM100 billing threshold. The subtotal for the charge will be for RM100 in ad costs, and then a 6% service tax will be added on top of that, so you’ll pay RM106.00 in total for that charge (RM100 + RM6 = $106). Because service tax is added on top of charges, you won’t reach your billing threshold faster, but you may be charged more than your billing threshold amount.
Bear in mind that Facebook isn’t able to give tax advice. If you have any questions about taxes, we suggest contacting your local tax advisors or tax authorities. Bear in mind that Facebook isn’t able to give tax advice. If you have any questions about taxes, we suggest contacting your local tax advisors or tax authorities. This is especially important if you’re planning on getting started in Quarter 1, as proper tax planning early in the year can help you stay on top of your obligations. Always ensure you’re following the guidelines specific to your region to avoid any potential issues.