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Malaysia service tax measures for COVID-19

  • Nov 24, 2020 | Richard Asquith

24 Nov - the Malaysian Finance Minister has said government considering the retintroduction of Goods & Services Tax after the COVID pandemic to help rebalance falling tax revenues.

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.

Explore more content like this in our Building for COVID-19 recovery hub

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VP Global Indirect Tax
Richard Asquith
VP Global Indirect Tax Richard Asquith
Richard Asquith is the former VP Global Indirect Tax at Avalara
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