In line with the announcement made by the Malaysian government regarding the Tourism Tax, I will talk about a series of questions that are commonly asked by hotel owners or operators, thus helping all of you to find the answers that are related to it.
Tourism Tax (TTx) is referred to as a tax charged for all foreign passport holders at accommodations premises collected by the operators effective from 1st September 2017 in Malaysia. It is charged at a fixed rate of RM10.00 per room per night.
This tax applies to all foreign guests, and accommodation operators are responsible for collecting and remitting it to the Royal Malaysian Customs Department (RMCD).
Assuming one room is booked for one night by John (who is a Filipino), the TTx charged to John will be RM10.00 x 1 room x 1 night = RM10.00
In the 2nd Scenario, assuming two rooms were booked by Dianne (who is an Indonesian) for three nights, so the TTx charged to Dianne will be RM10.00 x 2 rooms x 3 nights = RM60.00
Some online travel agencies (OTAs), such as Agoda and Booking.com, already collect the Tourism Tax (TTx) on their online payments and issue proof of payment to the guest. For bookings where payment is made at the property (“Pay Property”), the accommodation operator is responsible for collecting TTx at check-in.
For reservations made through other platforms, such as Expedia or Traveloka, or if the guest pays upon arrival, the accommodation operator must collect the TTx at check-in. Operators should always verify whether TTx has already been paid online to avoid duplicate collection.
Operators who fail to collect or remit TTx may face fines or audits by RMCD. Always ensure your registration is active, and maintain accurate records of foreign guests and payments.
We advise you to further consult with your business advisor or check with RMCD if you have not registered as a Tourism Tax registrant. Generally, if you are operating accommodation premises of 5 rooms or more, you are liable to be registered.
You may also check this website https://www.myttx.customs.gov.my/ to further understand the registration.
In this case, it is not subject to Tourism Tax because a local stayed and paid for the stay. However, the Tourism Tax is chargeable in the event that the foreigner stays and pays for the stay.
Unfortunately, we are unsure of this. Do let us know in the comment section if you have more information regarding this. What I can say is, you may refer to the T&C directly from the OTAs.
No. The operator is not allowed to charge SST on the Tourism Tax.
No, if the day use charge is not equal to the room rate per night.
Yes. The Digital Platform provider should make an appropriate adjustment in its system to capture the information that is to identify the citizenship of the tourists.
If due diligence has been done to obtain the information required from the tourists, the Digital Platform provider will not be responsible for any inaccurate information provided by the tourist, which may result in the under-collection of TTx.
Check out this blog step-by-step guide on How to File Tourism Tax (TTx) for Malaysian Hotels.
Check out this video where we answer a frequently asked question regarding the Tourism Tax.
That’s all the 12 common questions we have heard so far regarding the Malaysia Tourism Tax. With the complexities surrounding TTx collection, it's crucial for accommodation operators to have the right tools to ensure smooth compliance. Softinn PMS and Softinn Booking Engine offer features that simplify the entire process—from automatic tax collection during booking to generating reports for tax filings with RMCD.
If you are looking for a solution that helps you manage TTx efficiently while improving your overall operations, consider using Softinn. Please share this article if you find it useful, and drop any questions in the comments if you think there are more questions that should be answered.