Malaysia to impose tourism tax from August 2017

The Royal Malaysian Customs Department (RMCD) will be imposing a Tourism Tax (TTx) beginning 1 August 2017. The TTx will be regulated by the Ministry of Finance and the RMCD. The announcement stated that profit obtained from TTx will be used to develop the tourism industry, specifically the enhancement of tourism infrastructure and facilities, as well as campaigns and promotional activities.According to the RMCD's website, the tax rates per night are RM$2.50 for an "unrated" room; RM$5 for a one to three-star hotel room; RM$10 for a four-star hotel room; and RM$20 for a five-star hotel room. The tax applies to all guests, regardless of their nationality or purpose of travel such as holiday, business and studies.Premises exempted from the TTx are homestay and "Kampungstay" registered with the government; properties offering accommodation with fewer than 10 rooms; and rooms maintained for non-commercial purposes by religious institutions, governments and statutory bodies.Registration of operations of accommodation premises will begin 1 July 2017.Under the TTX, the registered operator is liable to collect tourism tax from the tourist upon his or her departure and pay the amount collected or liable to be collected to RMCD in respect of the 3-month taxable period.The Tourism Tax Bill was passed by the Malaysian parliament in April 2017.