Further to our Tax Whiz on 30 June 2021, the Royal Malaysian Customs Department (“RMCD”) has issued the Amendment to Service Tax Policy 2/2021 in respect of Service Tax exemption on the provision of accommodation services. Please click on the above header link for a copy of the Amendment (available in Malay language only).
The Amendment reiterates that the Service Tax exemption for the extended period from 1 July 2021 to 31 December 2021 is limited to the provision of accommodation premises (including breakfast where it is part of the package). Other services as prescribed under Group A, First Schedule of the Service Tax Regulations 2018 remain taxable.
Source KPMG
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