Postponement of Implementation of Tourism Tax on Digital Platform Service Provider Postponement of Implementation of Tourism Tax on Digital Platform Service Provider Postponement of Implementation of Tourism Tax on Digital Platform Service Provider

The Royal Malaysian Customs Department (“RMCD”) has just announced the postponement date for the implementation of Tourism Tax on accommodation premises booked through DPSP. Please click on the above header link for a copy of the announcement.

Based on the announcement:

• The Minister of Finance (“MOF”) has agreed to postpone the effective date from 1 January 2022 to 1 January 2023. 
• The effective date for registration by the DPSP is also postponed from 1 October 2021 to 1 October 2022.
• The new effective dates for the gazetted subsidiary legislations are also stated in the announcement.

The above signifies that the Government is cognizance of the plight of the tourism industry and is taking efforts to support the sector. It remains to be seen whether there will also be an extension to the Tourism Tax exemption for accommodation operators, which is currently exempted until 31 December 2021. DPSP and accommodation operators should stay updated on any further developments in this area.

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.