Malaysia: Digital platforms subject to tourism tax, effective July 2021

Malaysia: Digital platforms subject to tourism tax

Newly enacted legislation imposes the tourism tax on digital platforms that provide tourism-related services.

  • The Tourism Tax (Amendment) Act 2021 has an effective date of 1 July 2021.
  • The registration date regarding the new tourism tax liability for existing digital platform service providers is 1 April 2021. The registration portal has not yet been launched by the tax authorities.

In relation to the tourism tax, guidance orders—released 16 March 2021 and also effective 1 July 2021—set forth the rate of the tourism tax per room, per night. An exemption is provided for tourists who are Malaysian citizens or permanent residents of Malaysia

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

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