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You Might Want To Check If You're Paying This Tax When You Go Travelling!

There's a 'tourism tax'?
20 Mar 2019, 06:32 PM
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Expensive activities like travelling sometimes have expensive hidden charges!

Tourism tax is an unforeseen charge that many Malaysians don’t expect when going on vacation.

But before you complain, ask yourself this: What exactly is this tourism tax, and is it something that you need to be worried about?
 

What is tourism tax in Malaysia?

you might want to check if you

Tourism tax (also known as ‘TTx’) — are only collected by owners of accommodation if you are renting the space. The TTx is usually clearly indicated on bills.



It’s set at a flat rate of RM10 per night/room rented. This rate was fixed in September 2017, compared to the previous tourism tax system, where rates differed according to the number of stars an accommodation is rated with. TTx is only charged at the checkout process in the hotel.



This allows the hotel to calculate your total TTx payment based on the number of nights and rooms you actually utilised during your stay, which might differ from the initial booking.

Who has to pay the tourism tax?

you might want to check if you

The TTx must be paid by tourists who are planning to rent a room/place for at least one night in Malaysia.

The Malaysian Tourism Industry Act of 1992 defines a tourist as “any Malaysian or foreign national who visits any part of Malaysia for purposes including pleasure, recreation, business, sports, and meetings”. 



BUT, here’s some news that will give your kiamsiap side a reason to rejoice: only foreign tourists need to pay the TTx. You will be exempted from paying TTx if you fall in any of these categories: 

  • Tourists who happen to be Malaysian nationals. 
  • Tourists who possess a MyPR card and are thus recognised as permanent Malaysian residents. 

The TTx is applicable in all types of accommodation premises, ranging from hotels to hostels and motels.

Homestays and kampung-stays are the only two types of accommodation that are not required to collect these taxes, along with organisations who operate accommodation premises for the purposes of education, welfare or training.

Therefore, unless all foreign tourists were to find themselves a homestay or kampung-stay, they need to be prepared to pay the tourism tax for each night spent on Malaysian soil.
 

Does this tourism tax get refunded?

you might want to check if you

The answer to this question is ‘No’. However, TTx payments go to a good cause!

The funds collected from the TTx is used to improve hospitality and tourism infrastructure, and also for the protection and preservation of iconic culture and heritage attractions.

Tourists in Malaysia are no longer entitled to refunds for the Goods and Services Tax (GST) or Value Added Tax (VAT) either, as the Malaysian government revised the GST rate in 2018 from 6% to 0%, thus requiring no extra taxes to be paid for any goods that you purchase in Malaysia.

Can I use my travel insurance to claim tourism tax?

you might want to check if you

Although travel insurance plans are to protect you from harm and to compensate you for any damages you kena while travelling, they don’t protect your wallet from the TTx.


The same can be said for Malaysians who are travelling abroad: your travel insurance plan will not cover tourism tax payments that you’re required to make when visiting foreign countries. 

This doesn’t mean that you should neglect getting yourself a decent travel insurance plan for your journey! There are various benefits offered by travel insurance, which shouldn’t be taken lightly. “Better safe than sorry”, and what better way to get the right protection than to compare the packages on offer and get a free quote instantly with Loanstreet!

This article is brought to you by Loanstreet.com.my.

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