KUALA LUMPUR: Online businesses operated by small and medium enterprises (SMEs) with a yearly turnover less than RM500,000 need not fear of being taxed, says SMECorp Chief Executive Officer Datuk Hafsah Hashim.
She said those with a turnover of more than RM500,000 would be taxed but this should not discourage those earning less from striving ahead.
Hafsah said many online businesses were small-time SMEs and new entrepreneurs.
“Imposing tax will definitely impact those who have just started to conduct online business. But, they have to understand that tax will be imposed on companies with a sales turnover of more than RM500,000.
“If their turnover does not exceed this figure, I believe they should step up efforts to develop their online business further.
“They should not avoid from growing bigger just to avoid taxes ,” she told Bernama.
Ministry of Finance Secretary-General Tan Sri Irwan Serigar Abdullah said on Monday that the government was looking to tax online businesses next year in line with the growing Internet-based sector.
“If we are taxed, then we should get ready to run a structured business operation and adopt prudent measures,” Hafsah advised.
Meanwhile, on Britain exiting the European Union, Hafsah said SMEs which sourced from British companies may be affected should this take place.
However, she believed Malaysian SMEs were agile enough to overcome the impact and can adapt to the situation. --BERNAMA