Category: ICoEC 2017 Proceedings
Author: Lim Tan-Chin, Zubir Azhar
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Abstract

This paper describes enormous opportunities offered by electronic commerce (e-commerce) to stimulate economic growth, as well as the risks and challenges that it poses based on the principles that form the basis of tax administration system in Malaysia and other parts of the world generally. It then discusses how businesses, the governments and tax authorities around the globe have so far addressed them, which should serve as a basis for Malaysia to learn from. To construct this paper in an orderly manner, the paper highlights the issues posed by e-commerce on the current tax systems with some references to the Malaysian environment. Such issues are enlightened with references to strategies adopted by the tax authorities in some selected countries to meet the challenges faced in the era of e-commerce. A brief conclusion relating to the issues is incorporated at the end of this paper.

Keywords: E-commerce, withholding tax, royalty, tax evasion, double taxation agreement, permanent

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