Malaysia has extended the exemption from 5% Service Tax for hotels and overnight accommodation. The existing temporary cut was due to expire on 1 July 2021. It will now apply to 31 December 2021.
The reduction to 31 December 2021 applies to renting premises. Any other services – food or tourism – are not included within the exemption.
The tax subsidy for the tourism sector was first introduced on 1 March 2020 as the COVID-19 pandemic emerged.
In addition, the governments is providing:
- a reduction in business premises rent to small and medium enterprises (SMEs) and non-SMEs for another six months until Dec. 31 for a rental reduction of at least 30 percent; and
- postpone penalty payments until 2022 and provide rescheduling of outstanding tax payments for affected taxpayers and businesses.
You can verify any global VAT and GST rates via VAT Calc’s global rate searchable database.