According to updates made by the Malaysian Finance Minister II Datuk Seri Johari Abdul Ghani to the House of Representatives on 19 March 2018, the Malaysian Ministry of Finance ("MOF") is currently conducting a detailed analysis of the suitable mechanism and model for the imposition of taxes on online businesses. The MOF is also closely monitoring the comprehensive analysis carried out by the OECD with respect to taxation of the digital economy, and in particular the possible recommendations for the imposition of tax on non-resident providers.

These updates follow the release of the OECD Interim Report 2018 - Tax Challenges Arising from Digitalisation by the Task Force on the Digital Economy on 16 March 2018, which includes an analysis of value creation across different digitalised business models, the current progress in the implementation of the BEPS package particularly with respect to measures relevant to digitalised businesses, and an overview of measures enacted by countries that seek to address certain aspects of the broader tax challenges affecting the digital economy.