The Tourism Tax (TTx) in Malaysia is a fee imposed on foreign tourists staying at accommodation premises in the country. It was introduced to boost the country's tourism industry and improve the facilities and infrastructure available for tourists. The tax is charged at MYR10.00 per room per night, regardless of the star rating of the hotel or the type of accommodation.
Filing tourism tax is a crucial responsibility for hotels in Malaysia that host foreign guests. Properly tracking, filing, and paying this tax ensures compliance with regulations and avoids penalties. In this guide, I will walk you through the entire process, complete with examples to help you understand how Malaysia Hotels file Tourism Tax (TTx) to ensure compliance with the Royal Malaysian Customs Department regulations:
Before you can begin collecting tourism tax, your hotel must be officially registered with the Royal Malaysian Customs Department. You can register your hotel online via the MyTTx system, the official platform for managing tourism tax in Malaysia. Visit the MyTTx portal (https://myttx.customs.gov.my) and follow the instructions to sign up.
Once your registration is complete, you will be issued a unique Tourism Tax Registration Number. This number will be used for all future filings and payments related to tourism tax, so be sure to keep it on file.
The tourism tax (TTx) is applicable to foreign tourists staying in your hotel. The current rate is RM 10 per room, per night. Malaysian citizens and permanent residents are exempt from this tax.
When issuing an invoice to a guest, the tourism tax must be clearly itemized. This not only ensures transparency for the guest but also helps you maintain accurate financial records for filing the tax later.
One of the most important tasks is keeping accurate records of the tourism tax you collect from foreign guests. For example, let’s say an Australian guest stays for three nights at your hotel. The tourism tax, which is RM 10 per night, results in a total of RM 30 for this guest. This amount should be recorded accurately in your system.
To avoid manual errors, you can use a Property Management System (PMS) to automatically calculate and record tourism tax for each foreign guest. However, if you are tracking it manually, you might keep a log such as:
| Guest Name | Nationality | Nights Stayed | Total Tourism Tax Collected |
|---|---|---|---|
| Chris | Australia | 3 | RM 30 |
| Elizabeth Bell | American | 2 | RM 20 |
Once you have tracked and recorded the tourism tax for the month, the next crucial step is to file a return with the Royal Malaysian Customs Department. Filing must be done at the end of each month, and it is essential to follow the procedure to ensure compliance.
Here's the step-by-step guide on how you must file for the Tourism Tax from My TTx portal.
Note: Hotels should file a return every three months for the Tourism Tax received.
Paying the tourism tax is a straightforward process once you have filed your return. The payment can be made online through the MyTTx system using online banking. Here's how you can proceed with payment
It is important to ensure that the payment is made by the due date to avoid any penalties. If there are any discrepancies or issues with the payment, it is advisable to contact the Royal Malaysian Customs Department promptly to resolve them. Keeping accurate records of the amounts collected and paid will help in ensuring smooth transactions.
Filing tourism tax (TTx) can be straightforward, but several common pitfalls can lead to compliance issues and unnecessary penalties. Here are some mistakes to watch out for:
Filing tourism tax is an essential responsibility for hotels in Malaysia hosting foreign guests, and while the process may seem daunting at first, it becomes manageable with the right systems in place. The key is to stay proactive.
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