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Service Tax Policy 2/2021

The accommodation premise operators including hotels, inns, lodging houses, service apartments, homestays and any other similar establishments are exempted from charging Service Tax on the provision of accommodation services and related taxable services provided from 1 March 2020 to 30 June 2021.

In March 2021, it was announced under the PERMERKASA package that the Service Tax exemption will be further extended to 31 December 2021. The Royal Malaysian Customs Department has just issued Service Tax Policy 2/2021 to clarify that the Service Tax exemption for the extended period from 1 July 2021 to 31 December 2021 is limited to the provision of accommodation premises (i.e. other taxable services provided by the operators are still subject to 6% Service Tax).

This Service Tax Policy 2/2021 supersedes the Service Tax Policy 9/2020 (Amendment No.2).

Please click on the above header link for a copy of the Service Tax Policy 2/2021 (available in Malay language only).

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.

Petaling Jaya Office

Tai Lai Kok
Executive Director -
Head of Tax and Head of Corporate Tax
ltai1@kpmg.com.my
+ 603 7721 7020

Long Yen Ping
Executive Director -
Head of Global Mobility Services
yenpinglong@kpmg.com.my
+ 603 7721 7018

Bob Kee
Executive Director -
Head of Transfer Pricing
bkee@kpmg.com.my
+ 603 7721 7029

Ng Sue Lynn
Executive Director -
Head of Indirect Tax
suelynnng@kpmg.com.my
+ 603 7721 7271

Soh Lian Seng
Executive Director -
Head of Tax Dispute Resolution
lsoh@kpmg.com.my
+ 603 7721 7019

 

Outstation Offices

Penang Office

Kuching & Miri Office

Evelyn Lee
Executive Director -
Penang Tax
evewflee@kpmg.com.my
+604 238 2288 (ext. 312)

Regina Lau
Executive Director -
Kuching & Miri Tax
reglau@kpmg.com.my
+6082 268 308 (ext. 2188)

Kota Kinabalu Office

Johor Bahru Office

Titus Tseu
Executive Director -
Kota Kinabalu Tax
titustseu@kpmg.com.my
+6088 363 020 (ext. 2822)

Ng Fie Lih
Executive Director -
Johor Bahru Tax
flng@kpmg.com.my
+607 266 2213 (ext. 2514)

Ipoh Office

 

Crystal Chuah Yoke Chin
Tax Manager -
Ipoh Tax
ycchuah@kpmg.com.my
+605 253 1188 (ext. 320)