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Malaysian Adobe Creative Cloud users will have to pay 6% extra for digital tax

Beginning 1st January 2020, Adobe will be applying a 6% Sales and Services Tax on its digital services for Malaysian users. This is in accordance with the Service Tax (Amendment) Act 2019 where digital services will be taxed.

According to Adobe, the future statement will reflect the new tax rate and it will not affect the base price of your current subscription. Their FAQ states that it will only affect billing starting in January 2020. If you’ve prepaid for an annual plan, the SST goes into effect on your next plan renewal.

At the moment, Adobe Creative Cloud for all apps for a single user costs RM236/month for the annual plan and it will cost RM2,664 if you prepay for the full year. On a normal month by month subscription, it costs RM353/month. With the 6% tax, the monthly subscription on an annual plan will cost RM250.16, which is an RM14.16 increase per month.

The 6% tax for digital services was confirmed during the recent Budget 2020 announcement and it will cover all digital services from 1st January 2020. Other companies including Google, AWS and Facebook have made similar announcements for Malaysian users.

[ SOURCE ]

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Alexander Wong