Taxation on digital business

Digital Business? > 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.

Required documents to be kept for 7 years: 1. Statement from payment gateway (Paypal, ipay88, MOL, etc) 2. Domestic and personal expenses 3. Bank statement 4. Income statement from advertising company (such as Nuffnang, Google Adsense, etc) 5. Sale invoices and purchase records 6. Confirmation of sales and purchases via e-mail, etc Agreement 7. Original receipts for each deduction / expense claimed, etc

Examples of allowable business expenses: 1. Wages / salaries 2. Employee's EPF / SOCSO 3. Business insurance (burglary) 4. Business premises rental 5. Interest on business loan 6. Domain annual fees 7. Server rental

Source: LHDN

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