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FAQ Relating to Tourism Tax

Further to our Tax Whiz on the Highlights of the Tourism Tax Amendment Bill issued on 14 December 2020, the Royal Malaysian Customs Department ("RMCD") has recently issued a 'FAQ Relating To Tourism Tax (TTx) for Budget 2021' on 20 January 2021.

The FAQ provides a general overview of the expansion of the scope of imposition of Tourism Tax on accommodation booked through online platform, including the reason for the expansion, scope and rate. Based on the FAQ, the digital platform service providers need to modify their system to identify the citizenship status of each tourist through the identification of identity card number or passport number. The registration form for TTx will be released once the Tourism Tax Regulations 2021 is gazetted.

Although the effective date of this expansion to digital platform service providers is on 1 July 2021, there are quite a number of crucial areas which the digital platform service providers as well as accommodation operators would need to consider for example identifying the status of the accommodation operators (whether they are exempted), ability to capture the identification of the Malaysian and non-Malaysian tourists as well as documentation that needs to be issued. Hence, it is advisable for the digital platform service providers to start looking into their systems and operations, as actions could be taken for non-compliance.

Please click on the above header link for a copy of the FAQ at the MyTTx portal.

Should you have any questions or require further clarification, please do not hesitate to email or contact any of our Executive Directors, Directors, Associate Directors or Managers whom you are accustomed to dealing with or who are responsible for the tax affairs of your organization. 

The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation.

Ng Sue Lynn
Executive Director
Indirect Tax Practice

Dato' Tan Sim Kiat
Advisor
Indirect Tax Practice

Cheah Wai Ling
Director
Indirect Tax Practice