VATLive > Blog > Malaysia > Malaysia tax measures for COVID-19

Malaysia service tax measures for COVID-19

  • Jul 2, 2020 | Richard Asquith

2 July - the Malaysian government has provided additional service tax easements to the tourism sector. Tax payment installments may be delayed to 31 December. The Tourism Tax is set to zero from 1 July to 30 June 2021, The 30 March zeroing of the Service Tax rate on hotels has been extended until 30 June 2021.

2 Jun - Feb, Mar and Apr sales and services taxes returns deadlines have been delayed again. This time until 30 June 2020. There will be no late penalites or interest.

1 May - the February and March sales and services taxes returns deadlines have been postponed. The new deadline for both is 31 May 2020. Tourism taxes have been reduced over the same timetable.

16 April update - the deadlines for Sale and/or Service Tax submissions for March and April have been extended to 12 May 2020.

30 March - Malaysia has introduced a number of sesrvice tax measures to help companies during the coronavirus outbreak. Service Tax on accommodation and hotel services have been cut from 6% to zero. This has also been extended to sales of tobacco, alcohol in hotels until 31 August 2020.

Other tax easements have been introduced. Follow Avalara’s live global coronavirus Covid-19 VAT measures tracker.

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VP Global Indirect Tax
Richard Asquith
VP Global Indirect Tax Richard Asquith
Richard Asquith is VP Global Indirect Tax at Avalara, helping businesses understand their compliance obligations as they grow globally. He can be contacted at: richard.asquith@avalara.com. He is part of the European leadership team which won International Tax Review's 2019 Tax Technology Firm of the Year. Richard qualified as an accountant with KPMG in the UK, and went on to work in Hungary, Russia and France with EY.

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