Learn how Malaysia's 6% SST applies to Upwork fees and purchase, why it's collected, who it affects, and how tax residence updates change SST charges.
In this article
- What is Malaysia SST and why does Upwork collect it?
- What does Malaysia SST apply to for freelancers on Upwork?
- What's the Malaysia SST rate?
- Am I required to provide a Malaysia SST ID?
- Are there any exemptions to Malaysia SST?
- What happens to my Malaysia SST if I move to a new location?
- Who does Upwork collect SST from in Malaysia?
- Does Upwork still collect SST if I’m only residing in Malaysia temporarily?
What is Malaysia SST and why does Upwork collect it?
Sales and services tax, or SST, is a tax on goods or services, including our services to you, and Malaysia requires Upwork to collect it and send it to the government of Malaysia.
We’re required to comply with the tax laws of countries where we do business to operate there.
To learn more, visit the Malaysia tax authority website.
What does Malaysia SST apply to for freelancers on Upwork?
Examples of services that SST applies:
- Membership Fee
- Freelancer Service Fee
- Connects purchases
Since we charge tax when your government requires it, this tax may change or apply to additional services in the future.
What's the Malaysia SST rate?
It's 6% of the cost of the service being taxed.
Example: On $100 USD in Freelancer Service Fees, you'll pay $6 in tax, for a total of $106.
You'll see the estimated amount of tax when you check out and the final charge on your invoices and transactions.
Am I required to provide a Malaysia SST ID?
No. You're not required to provide a sales and services tax ID to Upwork, and providing it does not exempt you from paying the tax or having it collected by Upwork.
If you want your SST or SToDS (Service Tax on Digital Services) ID to show on your invoices, you can add it in your tax information, and we'll display it for you.
Are there any exemptions to Malaysia SST?
No. Malaysia does not offer any applicable exemptions to SST on services that Upwork provides, and there's no exemption for providing your SST ID.
What happens to my Malaysia SST if I move to a new location?
If you update your tax residence in your tax information, we'll automatically adjust your taxes based on your new country's rates, if any.
Who does Upwork collect SST from in Malaysia?
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.
Does Upwork still collect SST if I’m only residing in Malaysia temporarily?
As long as your tax residence is set to Malaysia, we’re required to collect them. If you move, update your tax information — we’ll adjust accordingly.