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Tourism Tax (Digital Platform Service Provider) Regulations 2021

The Tourism Tax (Digital Platform Service Provider) Regulations 2021 has been published in the Federal Gazette Portal on 31 March 2021. Please click on the above header link for a copy at the Federal Gazette Portal of the Attorney General's Chambers.

Some of the salient points of the Regulations are:-

  • The effective date for the registration section is 1 April 2021.

The manual registration form (Form TTx-01A), Digital Platform Service Provider Return (Form TTx-03A) as well as Tourism Tax Refund form (Form TTx-04A) are also made available but note that submissions for registration and returns need to be made online. The online registration forms and Return have yet to be released, as at to date.

  • Once registered, a registration number will be assigned to the Digital Platform Service Provider. 
  • The rules on issuance of credit notes and debit notes are provided. It appears to be similar to the rules for digital service provided by a foreign registered person for Service Tax purposes.
  • Any application for refund due to remission under Section 21 of the Tourism Tax Act 2017 needs to be made within 1 year from the date the remission is granted.

As more details start to be released, digital platform service providers as well as accommodation operators should keep a look out and stay abreast of latest developments. Although the Government recently announced the extension of the Tourism Tax exemption for hotel operators until 31 December 2021 in the PEMERKASA package, there appears to be no similar announcement for the extension to the registration period for digital platform service providers. As such, digital platform service providers should have already started to look into the mechanics of this Tourism Tax. Failure to comply with the Tourism Tax laws may result in penalties, compounds or fines.

Our highlights are intended to provide a general overview of the key proposed tax changes and should not be used or relied upon as a substitute for detailed advice or as a basis for formulating business decisions.

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

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.