Tourism Tax Policy and Amendments to Service Tax Policy

The Royal Malaysian Customs Department (“RMCD”) has uploaded a Tourism Tax Policy to recap the exemption of Tourism Tax announced by the Government earlier as well as amendments to two Service Tax Policies on its official portal.  Please click on the above header links for a copy each of the policies. 

Set out below are the salient points:- 

Tourism Tax Policy No. 1/2021

  • The exemption of Tourism Tax for the period from 1 July 2020 to 30 June 2021 has been further extended until 31 December 2021. 
  • Accommodation operators are still liable to submit TTx-03 Return to account and pay the Tourism Tax received from foreign tourists for accommodation provided before the exemption period or any Tourism Tax where payment has not been received from tourists within twelve calendar months that become due in the taxable period. 
  • The amount of Tourism Tax exempted must be stated in Column 7 of the TTx-03 Return i.e. the amount exempted for each night per room. 
  • During the exemption period, Tourism Tax should be recorded as “exempt” or “NIL” or “RM0.00” in the invoice issued to foreign tourists. 

Amendment (No.2) to Service Tax Policy No. 9/2020

  • Registered accommodation premise operators are exempted from charging Service Tax from 1 March 2020 to 31 December 2021.
  • Service Tax is exempted for services occurring on 31 December 2021 and ending 1 January 2022. 

Amendment to Service Tax Policy No. 2/2019

  • Subject to meeting conditions, Service Tax exemption on imported taxable services for companies in Labuan effective 1 September 2019 is now extended to 31 December 2021. 

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.



Ng Sue Lynn
Executive Director
Indirect Tax Practice


Dato’ Tan Sim Kiat
Indirect Tax Practice


Yap Choon Ling
Indirect Tax Practice