Malaysia requires Upwork to collect sales and services tax, or SST, and remit the tax to the government of Malaysia. SST is a tax on goods or services, including our services to you, and remit means to send money for a payment.
Examples of services with SST in Malaysia
- Marketplace fee, Contract Initiation Fee, conversion fee, and recruiter fee
When we charge tax, it’s because your government requires us to, which means this tax may change or apply to additional services in the future.
Tax rate amount
In Malaysia, the SST rate is 6% of the cost of the service being taxed. For example, if you pay $100 USD in client marketplace fees, you will pay $6 in tax, for a total of $106.
You will see the estimated amount of tax when you check out and on your invoices and Transaction History.
SST ID
You are not required to provide a sales and services tax ID to Upwork, and providing a valid SST ID does not exempt you from paying the tax. However, if you choose to provide your SST ID, we will display it on your invoices. You can enter it in your account’s Tax Information.
An SST ID number is different from your tax identification number or your National Registration Identity Card number (NRIC number). It is a unique ID that you may request from your government by registering for SST. It has 15 alphanumeric characters and should look like this, for example: W88888888888888.
You may also use your Service Tax on Digital Services ID (SToDS ID), which has 8 digits and looks like this, for example: 88888888.
To learn more, visit the Malaysia tax authority website.
Exemption
Malaysia does not offer any applicable exemptions to SST, and there is no exemption for providing your SST ID.
Location changes
If you change locations and update your tax residence in your Tax Information, we'll automatically adjust your SST to correspond with the rates in your new country of residence or stop collecting if there is no SST, or a similar tax, in your new country.
Disclaimer:
This article is for general information only and should not be considered tax advice. It may not be updated in real time and may not reflect recent changes. We strongly encourage you to consult your country’s tax authority or your tax advisor with questions related to your specific situation.
Frequently Asked Questions
Malaysia’s SST applies to services we provide to both freelancers and clients if they reside, have a permanent address, or are established in Malaysia.
We’re required to comply with the tax laws of the countries where we operate to continue to do business in those countries. Malaysia requires that we collect SST on Upwork services and remit them to your government.
No, you are not required to provide us with your SST ID. Malaysia does not require us to have it.
However, if you choose to provide your SST ID, we will display it on your invoices and Transaction History. If you would like to enter it so that it will be displayed, you may do so by entering it in your account’s Tax Information.
Yes, we will still collect SST. Malaysia does not exempt you from the tax if you provide your SST ID.
We are still required to collect SST even if you are only residing in Malaysia temporarily. If you move to another country, you can update your tax residence in your Tax Information. We will automatically adjust your SST to correspond with the rates in your new country of residence or stop collecting if there is no SST, or a similar tax, in your new country.
