Malaysia Tourism Tax 2017 (TTx)

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What’s Your Thought??

Ministry of Finance (“MOF”), the Royal Malaysian Customs Department (“RMCD”) and the Ministry of Tourism and Culture (“MOTAC”) announced on 05.June.2017 that starting 01.Aug.2017, all operators of accommodation premises are required to collect “Tourism Tax” from their customers following rates table below:

Category	Tax Rate
5 stars	RM 20 per room per night
4 stars	RM 10 per room per night
1, 2 and 3 stars	RM 5 per room per night
1, 2 and 3 Orchid	RM 2.50 per room per night
Ohters (homestays, AirBnB and others)	RM 2.50 per room per night

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UPDATES:
“Treasury secretary-general Mohd Irwan Serigar Abdullah was reported as saying that locals staying at hotels rated three stars and below might be exempted from the new tourism tax.”

from http://www.freemalaysiatoday.com/category/nation/2017/06/21/impose-tourism-tax-only-on-foreigners-says-budget-hotel-body/

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UPDATES:
“Sabah, Sarawak to jointly seek deferring Tourism Tax”

from http://www.thestar.com.my/news/nation/2017/07/09/sabah-swak-to-jointly-seek-deferring-tourism-tax/

[JeeShen Lee]

Latest updates:

“Government decided to only impose the tax on foreign tourists at a flat rate of RM10 / night. Applies to only hotel. Hotels with less than 5 rooms and homestays are exempted.”

http://www.thestar.com.my/news/nation/2017/07/27/no-tourism-tax-for-malaysians-govt-rm10-flatrate-levy-will-only-apply-to-foreign-visitors/

Questions:
1. If we are suppose to collect the tax when the customers (foreigner) book online, how are we suppose to know if they are foreigner?
2. Or if we collect the tax when the customers (foreigner) check-in. How are we suppose to keep track and file the returns to government?

What you think?

[JeeShen Lee]

Spoke to quite a number of hotels, many are still not sure how they would collect the Tourism Tax and then remit to the relevant department.

OTAs (e.g. Agoda) advice hotels to collect the TTX on the arrival of the guest (during check-in process). I believe the reason being so – is because it cost money to collect payment online (who will bear the cost of the gateways charges on the TTX?). Not forgetting the need to differentiate “foreigner” travelers over “local” travelers in the collection.

[JeeShen Lee]

Malaysian Association of Hotel Owners (MAHO) representative En.Shaharuddin shares his concerns about potential implementation issues and broader trends in the hotel industry, including the rise of unregistered premises on BFM radio

https://www.bfm.my/bg-shaharuddin-saaid-maho-late-check-in-for-tourism-tax

Tourism Malaysia Chairman Datuk Siew KaWei about the controversial RM10 tourist tax that kicks off Sept 1 on BFM

https://www.bfm.my/bt-taxing-tourists

[JeeShen Lee]

President of MyBHA (Malaysia Budget Hotel Association) PK Leong makes some really good points about Tourism Tax

https://www.facebook.com/MBHAHQ/videos/1499233353443798/

Join press conference of MAHO and MyBHA

https://www.facebook.com/MBHAHQ/?hc_ref=ARTdG_H0gwVEhGwB6f6eNILFvuM7h_TBA-ZIp221qfIl2GDOJVsXjmMj5ySkgHTip28

• This reply was modified 3 years, 4 months ago by JeeShen Lee. Reason: Added new links

[JeeShen Lee]

News on Tourism Tax on the first day of TTx [in Chinese]

https://www.youtube.com/watch?v=kgh3mUzPSA4

[JeeShen Lee]

Foreign tourists is reported to cause a scene over RM10 tourism tax on New Straits Times.

https://www.nst.com.my/news/nation/2017/09/276064/foreign-tourists-causing-scene-over-rm10-tourism-tax-say-melaka-budget

[JeeShen Lee]

Newly appointed Minister (Datuk Mohamaddin Ketapi) said that his department will review TTx

https://www.nst.com.my/news/nation/2018/07/386962/government-review-tourism-tax-mohamaddin