Malaysia: Tourism tax on premises booked via digital platform service providers postponed to 2023

Postponement of implementation of the tourism tax that is to be imposed on accommodation premises booked through digital platform service providers

Premises booked via digital platform service providers

The Royal Malaysian Customs Department announced the postponement of implementation of the tourism tax that is to be imposed on accommodation premises booked through digital platform service providers.

  • The effective date is postponed to 1 January 2023 (from 1 January 2022). 
  • The effective date for registration by the digital platform service provider is also postponed to 1 October 2022 (from 1 October 2021).

KPMG observation

The postponed effective dates appear to signal an effort by the government to support the tourism industry. Whether there will also be an extension to the tourism tax exemption for accommodation operators currently exempted until 31 December 2021 remains to be seen.

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

 

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