TOURISM TAX ACT 2017

LAWS OF MALAYSIA ONLINE VERSION OF UPDATED TEXT OF REPRINT Act 791 TOURISM TAX ACT 2017 As at 1 January 2024 This text is ONLY AN UPDATED TEXT of the Tourism Tax Act 2017 by the Atto rney General’s Chambers. Unless and until reprinted pursuant to the powers of the Commissioner of Law Revision under subsection 14(1) of the Revision of Laws Act 1968 [Act 1], this text is NOT AN AUTHENTIC TEXT. 2 TOURISM TAX ACT 2017 Date of Royal Assent … … … … 19 June 2017 Date of publication in the Gazette … … … … 21 June 2017 Latest amendment made by Act 851 which came into operation on … … … … See section 97 of Act 851 3 LAWS OF MALAYSIA Act 791 TOURISM TAX ACT 2017 ARRANGEMENT OF SECTIONS PART I PRELIMINARY Section 1. Short title and commencement 1A. Territorial and extra-territorial application 2. Interpretation PART II ADMINISTRATION 3. Functions and powers of Director General and other officers 4. Public servants 5. Authority cards, etc., to be produced PART III IMPOSITION OF TOURISM TAX 6. Imposition of tourism tax 7. Duty of operator to collect tourism tax and pay tourism tax collected to Director General 8. Rate of tourism tax 9. Power of Minister to exempt 4 Law of Malaysia ACT 791 PART IV REGISTRATION Section 10. Liability of operator to be registered 11. Liability of operator operating accommodation premises before commencement of the Act to be registered 12. Registration of operator 13. Cancellation of registration PART V INVOICES, RECORDS, RETURNS AND ASSESSMENT 14. Invoice, receipt or other document 15. Production of invoice, receipt or other document by computer 16. Credit note and debit note 17. Duty to keep records 18. Taxable period 19. Furnishing of returns and payment of tourism tax 20. Power to assess PART VA DIGITAL PLATFORM SERVICE PROVIDER 20A. Imposition of tourism tax 20B. Duty of digital platform service provider to collect tourism tax and pay tourism tax collected to Director General 20C. Liability of digital platform service provider to be registered 20D. Registration of digital platform service provider 20E. Cancellation of registration 20F. Invoice, receipt or other document 20G. Credit note and debit note 20H. Taxable period 20I. Furnishing of returns and payment of tourism tax Tourism Tax Section 20J. Duty to keep record 20K. Service of notices, etc. PART VI REMISSION, REFUND AND RECOVERY 21. Remission 22. Refund of tourism tax, etc., overpaid or erroneously paid 23. Refund for bad debt 24. Deduction from return of refunded tourism tax 25. Power to collect tourism tax, etc., from persons owing money to operator or digital platform service provider 26. Payment by instalments 27. Recovery of tourism tax, etc., from persons leaving Malaysia 28. Recovery of tourism tax, etc., erroneously refunded 29. Recovery of tourism tax, etc., as civil debt 30. Recovery of tourism tax in other circumstances 31. Joint and several liability of partners, officials, committee members or directors PART VIA RULING 31A. Public ruling PART VII ENFORCEMENT 32. Powers of enforcement, inspection and investigation 33. Access to place, premises, etc. 34. Access to recorded information or computerized data 35. Magistrate may issue search warrant 36. Search may be made without warrant 5 6 Law of Malaysia ACT 791 Section 37. Seizure of books, documents, etc. 38. Power of arrest PART VIII OFFENCES AND PENALTIES 39. Penalty for obstructing, etc., officer of customs 40. Penalty for incorrect return 41. Penalty for collecting tourism tax by person not liable to collect tourism tax 42. Penalty for evasion of tourism tax, fraud 43. Penalty for refusing to answer question or giving false information 44. Attempts and abetments 45. General penalty 46. Offence by body of persons, etc. 47. Offence by employee or agent 48. Tourism tax, etc., to be payable notwithstanding any proceedings, etc. PART IX TRIALS AND PROCEEDINGS 49. Prosecution 50. Jurisdiction to try offences 51. Conviction under other laws 52. Evidential provisions 53. Evidentiary value of copies of electronic notice 54. Imprisonment for non-payment of fine 55. No costs or damages arising from seizure to be recoverable unless seizure without reasonable or probable cause 56. Compounding of offences 57. Court order 58. Obligation of secrecy 59. Protection of informers from discovery Tourism Tax PART X MISCELLANEOUS Section 60. Persons bound to produce books, etc., or give information, etc. 61. Service of notices, etc. 62. Use of electronic service 63. Authentication of notices, etc. 64. (Deleted) 65. Transaction of business on behalf of operator or digital platform service provider 66. (Deleted) 67. Disputes and appeal 68. Liquidator of company to give notice of winding up and set aside tourism tax 69. Appointment of receiver to be notified to the Director General 69A. Power to extend period 69B. Power to modify terms and conditions 70. Power to make regulations 7 9 LAWS OF MALAYSIA Akta 791 TOURISM TAX ACT 2017 An Act to provide for the imposition and collection of tourism tax and for connected matters. [1 August 2017-Parts I, II, IV and X, and sections 8 and 9, P.U. (B) 398/2017; 1 September 2017-Parts V, VI, VII, VIII and IX, and sections 6 and 7, P.U.(B) 398/2017] ENACTED by the Parliament of Malaysia as follows: PART I PRELIMINARY Short title and commencement 1. (1) This Act may be cited as the Tourism Tax Act 2017. (2) This Act comes into operation on a date to be appointed by the Minister by notification in the Gazette and the Minister may appoint different dates for the coming into operation of different Parts or different provisions of this Act. Territorial and extra-territorial application 1A. (1) This Act and its subsidiary legislation shall apply both within and outside Malaysia. (2) Notwithstanding subsection (1), this Act and its subsidiary legislation shall apply to any person of whatever nationality or 10 Law of Malaysia ACT 791 citizenship, beyond the geographical limits of Malaysia and the territorial waters of Malaysia, if the person is a digital platform service provider registered under section 20D. Interpretation 2. In this Act, unless the context otherwise requires— “prescribed” means prescribed by regulations made under this Act; “document” has the meaning assigned to it in section 3 of the Evidence Act 1950 [Act 56]; “electronic” has the meaning assigned to it in section 5 of the Electronic Government Activities Act 2007 [Act 680]; “Director General” means the Director General of Customs and Excise appointed under subsection 3(1) of the Customs Act 1967 [Act 235]; “computer” has the meaning assigned to it in section 3 of the Evidence Act 1950; “Minister” means the minister charged with the responsibility for finance; “person” includes an individual, a firm, a society, an association, a company and other body of persons; “senior officer of customs” has the meaning assigned to it in subsection 2(1) of the Customs Act 1967; “officer of customs” has the meaning assigned to it in subsection 2(1) of the Customs Act 1967; “tourist” has the meaning assigned to it in subsection 2(1) of the Tourism Industry Act 1992 [Act 482]; Tourism Tax 11 “operator” means any person who operates accommodation premises; “digital platform service provider” means any person who provides service relating to online booking accommodation premises to a tourist whether such person is in Malaysia or outside Malaysia; “accommodation premises” has the meaning assigned to it in subsection 2(1) of the Tourism Industry Act 1992; “service relating to online booking accommodation premises” means any online service relating to the booking of accommodation premises that is delivered automatically over the internet or any other electronic network; “surcharge” means the surcharge imposed under section 26; “taxable period” means the period as specified in section 18. PART II ADMINISTRATION Functions and powers of Director General and other officers 3. (1) The Director General shall have the superintendence of all matters relating to tourism tax subject to the direction and control of the Minister. (2) Subject to the general direction and supervision of the Director General, all officers of customs appointed under section 3 of the Customs Act 1967 and holding the rank of Superintendent or any rank higher than that of Superintendent, shall have and exercise all powers conferred on the Director General in this Act other than those conferred in sections 21 and 66. (3) It shall be the duty of any officer of customs to enforce and ensure due compliance with the provisions of this Act and to make all due enquiries in relation thereto. 12 Law of Malaysia ACT 791 (4) Every person employed on any duty or service relating to the tourism tax by the order or with the concurrence of the Director General, whether previously or subsequently expressed, shall be deemed to be the proper officer for that duty or service. Public servants 4. All public officers while discharging any duty or providing any service relating to tourism tax shall be deemed to be public servants within the meaning of the Penal Code [Act 574]. Authority cards, etc., to be produced 5. (1) Every officer of customs when discharging his duties shall, if not in uniform, on demand made by any person, declare his office and produce to the person the authority card or badge prescribed under section 8A of the Customs Act 1967. (2) It shall not be an offence for any person to refuse to comply with any request, demand or order made by any officer of customs acting or purporting to act under this Act if such officer is not in uniform and refuses to declare his office and produce his authority card or badge on demand being made by the person. PART III IMPOSITION OF TOURISM TAX Imposition of tourism tax 6. (1) A tax to be known as tourism tax shall be charged and levied on a tourist staying at any accommodation premises made available by an operator at the rate fixed by the Minister in accordance with section 8. (2) Subject to subsection (3), it shall be the duty of the tourist to pay the tourism tax to the operator. Tourism Tax 13 (3) Where more than one tourist are staying in the same accommodation at the same time and the tourism tax for that accommodation has been paid by any one of the tourists, the other tourists staying in the same accommodation at the same time shall not be liable to pay tourism tax for that accommodation. Duty of operator to collect tourism tax and pay tourism tax collected to Director General 7. (1) Subject to subsection 6(3), it shall be the duty of every operator who provides accommodation to a tourist in an accommodation premises to collect the tourism tax from the tourist. (2) Every operator shall pay the tourism tax collected or liable to be collected under this Act to the Director General. Rate of tourism tax *8. (1) The Minister may, with the concurrence of the minister charged with the responsibility for tourism, by order published in the Gazette, fix the rate of the tourism tax to be charged and levied under this Act. (2) For the purpose of subsection (1), “fix” includes “increase” or “reduce”. (3) Any order made under subsection (1) shall be laid before the Dewan Rakyat. (4) (Deleted by Act 851). (5) (Deleted by Act 851). ⎯⎯⎯⎯⎯⎯⎯⎯⎯⎯⎯⎯⎯⎯⎯⎯⎯⎯⎯⎯⎯⎯⎯⎯⎯⎯⎯⎯⎯⎯ NOTE⎯For application of section 8 Tourism Tax Act 2017 [Act 791]–see subsection 1(3) and section 21 of Tourism Tax (Amendment) Act 2021 [Act A1633] w.e.f. 1 July 2021.  14 Law of Malaysia ACT 791 Power of Minister to exempt 9. (1) The Minister may, by order published in the Gazette, in any particular case and subject to such conditions as he deems fit to impose— (a) exempt any tourist or class of tourist from the payment of the whole or any part of the tourism tax; (b) exempt any operator, class of op