The Inland Revenue Board (IRB) is studying a mechanism to tax multinational companies (MNCs) conducting digital or online business.
Treasury secretary-general Mohd Irwan Serigar Abdullah said the IRB has the right to collect taxes from companies that generate revenue in this country.
"Uber is one example. They make a profit and must pay tax. I am not talking about small online business but big online business with high revenue," he told reporters after the ground breaking ceremony of the Kluang IRB building today.
The nine-storey building costing RM63 million is expected to be completed in December 2018.
The Kluang IRB branch collected about RM900 million tax last year. It is operating from rented premises.
Also present at the ceremony was the IRB chief executive officer Sabin Samitah.
Mohd Irwan, who is also IRB chairperson, said a task force had been formed to find a mechanism to tax large online businesses.
The IRB expects to collect a total of RM127 billion in taxes in 2017 based on the country's current economic development.