Malaysia: Clarification of service tax exemption for hotels, accommodation operators (COVID-19)

An amendment to earlier guidance with respect to an exemption from service tax for hotels and certain other accommodation operators

Clarification of service tax exemption for hotels, accommodation operators

The Royal Malaysian Customs Department issued an amendment to earlier guidance with respect to an exemption from service tax for hotels and certain other accommodation operators (including inns, lodging houses, service apartments, homestays, and other similar establishments).

A temporary exemption from service tax—relief offered to accommodation operators in response to the coronavirus (COVID-19) pandemic—was previously extended through 31 December 2021. Read TaxNewsFlash

The recent amendment reiterates that the service tax exemption for the extended period through 31 December 2021 is limited to the provision of accommodation premises and certain related services.

Read an August 2021 report prepared by the KPMG member firm in Malaysia 

 

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