Malaysia: FAQs on tourism tax and bookings via online platforms

Malaysia: FAQs on tourism tax and bookings via online

The Royal Malaysian Customs Department on 20 January 2021 issued a set of “frequently asked questions” (FAQs) about the tourism tax and specifically addressing the expanded scope of the tourism tax regarding accommodations booked via an online platform.

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The FAQs [PDF 133 KB] explain the expanded scope and rate of the tourism tax. Based on the FAQs, digital platform service providers need to modify their system to identify the citizenship status of each tourist (through an identity card number or passport number). The registration form will be released once the regulations are published in the official gazette.

Although the effective date of this expansion to digital platform service providers is 1 July 2021, there are certain items that digital platform service providers as well as accommodation operators need to consider—for example, identifying the status of the accommodation operators (whether they are exempt), ability to capture the identification of the Malaysian and non-Malaysian tourists, and required documentation that needs to be issued.

Read a January 2021 report prepared by the KPMG member firm in Malaysia 

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