TOURISM AND
TRAVEL RELATED
SERVICES
MALAYSIA: INVESTMENT IN THE SERVICES SECTOR
Malaysian Investment Development Authority
MIDA Sentral, No.5, Jalan Stesen Sentral 5, Kuala Lumpur Sentral, 50470 Kuala Lumpur, Malaysia
Tel : (603)2267 3633 Fax: (603)2274 7970 Website: www.mida.gov.my
E-mail: [email protected]
2018
MALAYSIAN INVESTMENT DEVELOPMENT AUTHORITY
Introduction
This booklet is one of a series of 20 booklets prepared by MIDA for the
purpose of providing investors with relevant information on establishing
projects in the identied services sub-sectors in Malaysia. The complete
list of booklets is as follows:
Booklet 1: General Policies, Facilities and Guidelines
Booklet 2: Regional
Operations
Booklet 3: Research and Development (R&D) Services
Booklet 4: Logistics Services
Booklet 5: Specialised Technical Support Services
Booklet 6:
Informatio
n
and
Communicatio
n
Technology
Services
Booklet 7: Environmental
Management
Services
Booklet 8:
Distributiv
e
Trade Services
Booklet 9: Tourism and
Trave
l
Related Services
Booklet 10:
Education and Industrial Training Services
Booklet 11: Legal Services
Booklet 12:
Accounting,
Auditing
and Taxation Services
Booklet 13:
Architectural Consultancy
Services
Booklet 14: Surveying Consultancy Services
Booklet 15: Medical and Health
Care
Services
Booklet 16: Engineering and Energy Consultancy Services
Booklet 17:
Management
Consultancy
S
e
rvice
s
Booklet 18: Market
Research
Services
Booklet 19: Advertising Services
Booklet 20: Quick
Refe
r
e
nce
The Ministry of International Trade & Industry (MITI) spearheads the development of
industrial activities to further enhance Malaysia’s economic growth. As an agency under MITI,
the Malaysian Investment Development Authority (MIDA) is in charge of the promotion and
coordination of industrial development in the country.
MIDA is the rst point of contact for investors who intend to set up projects in manufacturing
and services sector in Malaysia. With its headquarters in Malaysia’s capital city of Kuala
Lumpur, MIDA has established a global network of 20 overseas oces covering North America,
Europe and the Asia Pacic to assist investors interested in establishing manufacturing projects
and services activities in Malaysia. Within Malaysia, MIDA has 12 branch oces in the various
states to facilitate investors in the implementation and operation of their projects.
If you wish to explore investment opportunities in Malaysia, please contact MIDA for
more information as well as assistance in your decision-making (please see the last page
of contact details of MIDA’s headquarters and state and overseas oces).
9
BOOKLET
TOURISM
AND TRAVEL
RELATED SERVICES
1 HOTEL AND RESTAURANT 2
1.1 Licensing and Registration 2
1.2 Equity Policy 2
1.3 Specic Immigration Procedures 3
1.4 Tax Incentives 3
2 TOUR OPERATING/TRAVEL AGENCY BUSINESS 4
2.1 Licensing and Registration 5
2.2 Renewal of Licence 6
2.3 Equity Policy 7
2.4 Letter of Support for Expatriates 9
2.5 Specic Immigration Procedures 9
2.6 Tax Incentive 9
3 TOURISM VEHICLE BUSINESS 10
3.1 Licensing and Registration 10
3.2 Equity Policy 12
3.3 Tax Incentives 13
4 MALAYSIA MY SECOND HOME (MM2H) AGENT LICENCE 13
4.1 Licensing and Registration 14
4.2 Equity Policy 15
5 FINANCIAL ASSISTANCE 16
5.1 Tourism Development Infrastructure Fund
5.2 Special Tourism Fund 16
6 OTHER INCENTIVES 19
6.1 Double Deduction on Overseas Promotion 19
6.2 Double Deduction on Approved Trade Fairs 20
6.3 Tax Exemption for Promoting International Conference 20
and Trade Exhibitions
6.4 Double Deduction on Cultural Performances 20
6.5 Incentives for the Luxury Yacht Industry 20
6.6 Incentive for the Promotion of Healthcare Travel 21
7 GENERAL AGREEMENT ON TRADE IN SERVICES (GATS) 22
ASEAN FRAMEWORK AGREEMENT ON SERVICES (AFAS)
AND FREE TRADE AGREEMENTS (FTAS)
2
Tourism and Travel Related Services
TOURISM
AND TRAVEL
RELATED SERVICES
Tourism and Travel Related Services is divided into four (4) sub-sectors namely:
• Hotelsandrestaurants(includingcatering);
• Travelagencyandtouroperatorservices;
• Touristguideservices;and
• Othertourismservices.
Tourism activities are part of more general services activities most notably many transport
services,certainbusinessservices,distributionservices;andrecreational,culturalandsporting
services.
Malaysia gives a lot of importance to the tourism sub-sector in view of the foreign exchange
earnings potential. Major tourism industries guidelines within the subsector consist of Hotel
and Restaurant, Tour Operating/Travel Agency Business, Tourism Vehicle Business, and Malaysia
My Second Home scheme (MM2H). Other tourism activities include Meetings, Incentives,
Conferences, Exhibitions (MICE), Medical/Health Tourism, and SPA and Wellness Services.
1. HOTEL AND RESTAURANT
1.1 Licensing and Registration
Guidelines for licence of Hotel and Restaurant businesses are provided in the ‘Guidelines for
Improvement of Issuance of Business Licence and Composite Hotel Licence (Amendment
2011)’ obtainable from the Ministry of Urban Wellbeing Housing and Local Government.
1.2 Equity Policy
The Government had announced on 22 April 2009 that the following hotel and restaurant
services would be among the 27 services sub-sectors that would be liberalised:
• HotelandRestaurantServices(for4and5starhotelsonly)(CPC64110andCPC64199)
• FoodServingServices(forservicesprovidedin4and5starhotelsonly)(CPC642)
• BeverageServingServicesforconsumptiononpremises(forservicesprovidedin4and5
star hotels only) (CPC 643)
Please refer to MITI website www.miti.gov.my for information on liberalisation.
3
Tourism and Travel Related Services
For purposes of tax incentive, the following equity policy is applicable for the hotel industry:
Star Rating Local Equity Condition
1 – 2 star 100% Malaysian
3
star
At least 30% Malaysian for applications received in 2015
and thereafter
4 – 5 star No equity condition
1.3 Specic Immigration Procedures
A company which operates 4 and/or 5 star hotels and/or tourism projects rated by the
Ministry of Tourism and Culture (MOTAC) that requires expatriate posts should submit the
applications to MIDA.
However, a company which operate hotels rated as 3 star and below that require
expatriate posts should forward the applications for Employment Passes to the Immigration
Department.
1.4 Tax Incentives
(a) Incentives for Undertaking New Investments in Hotels and Tourism Projects
Companies undertaking new investments in 1 to 5 star hotels and/or tourism projects
are eligible for the following incentives:
(i) Pioneer Status, with income tax exemption of 70% (100% for 4 and 5 star hotels
in Sabah and Sarawak) of the statutory income for a period of ve (5) years,
commencing from its Production Day which is determined by the Ministry of
International Trade and Industry (MITI). Unabsorbed capital allowances as well
as accumulated losses incurred during the pioneer period can be carried forward
anddeductedfromthepostpioneerincomeofthecompany;or
(ii) Investment Tax Allowance of 60% (100% for 4 and 5 star hotels in Sabah and
Sarawak) on the qualifying capital expenditure incurred within a period of ve (5)
years. The allowance can be oset against 70% (100% for 4 and 5 star hotels in Sabah
and Sarawak) of the statutory income in each year of assessment. Any unutilised
allowances can be carried forward to subsequent years until fully utilised.
Applications should be submitted to MIDA. For 4 and 5 star hotels, applications must be
submitted on or before 31 December 2020
(b) Incentive for Reinvestment in Hotels and Tourism Projects
Companies that reinvest in the expansion and modernisation of 1 to 5 star hotels and/
or tourism projects are eligible for additional rounds of tax incentives as follows:
4
Tourism and Travel Related Services
- hotelprojects:three(3)rounds;and
- tourism projects: two (2) rounds.
The incentives are as follows:
(i) Pioneer Status with income tax exemption of 70% (100% for 4 and 5 star hotels) of
the statutory income for a period of ve (5) years, commencing from its Production
Day which is determined by the Ministry of International Trade and Industry (MITI).
Unabsorbed capital allowances as well as accumulated losses incurred during the
pioneer period can be carried forward and deducted from the post pioneer income
ofthecompany;or
(ii) Investment Tax Allowance of 60% (100% for 4 and 5 star hotels) on the qualifying
capital expenditure incurred within a period of ve (5) years. The allowance can
be oset against 70% (100% for projects located in Sabah and Sarawak) of the
statutory income in each year of assessment. Any unutilised allowances can be
carried forward to subsequent years until fully utilised.
For tourism projects, companies are eligible to apply for either PS or ITA for both two rounds
of reinvestments. However, for hotel projects, companies are eligible to apply for ITA only for
all the three rounds of reinvestments.
Applications should be submitted to MIDA.
2. TOUR OPERATING/TRAVEL AGENCY BUSINESS (TOBTAB)
The three (3) types of businesses licensed are as follows:
(a) Tour operating business (Inbound & Outbound)
‘Tour operating business’ means any business of providing all or any of the following
services:
(i) Arranging for sale or commission any transportation, accommodation, tour services
or any other incidental services for tourists within or outside Malaysia.
(ii) Organising or conducting for sale or commission inbound or outbound tours.
(iii) Providing conveyances for hire to tourists.
(iv) Any other service incidental to any of the activities enumerated above.
(b) ‘Travel agency business’ (Ticketing) means any business of providing all or any of the
following services:
(i) Selling, arranging or making available for commission tickets entitling a person to
travelonanyconveyanceeitherbyland,seaorair;
5
Tourism and Travel Related Services
(ii) Selling, arranging or making available for commission accommodation places
withinMalaysiaoroutsideMalaysia;and
(iii) any other services incidental to any of the activities enumerated above.
Applicants must be private limited companies incorporated under the Companies Act, 2016.
2.1 Licensing and Registration
A company intending to apply for the Tour Operating/Travel Agency Business Licence is
required to submit application to the Tourism Licensing Division through Tourism Industry
Licensing System (SPIP) at www.spip.gov.my.
Further details can be obtained from the MOTAC website at www.motac.gov.my
Applicant must submit required documents as follows:
• PurchaseSSMe-Infothroughwww.spip.gov.my
• MyKad(Malaysians)/Passport(non-Malaysian)oftheShareholders/Directors
• Supportingletteroncooperativerelationshipswithoverseastravelagencies
• Draftproposalsontourpackages(Inbound&Outbound)
• Paperwork containing business planning, target number of tourists to Malaysia and
short-term revenue for the company which its shareholders are foreign companies.
• FinancialAuditedReport(latest)whichhasbeenlodgedandendorsedbytheCompanies
Commission of Malaysia (for companies that have been licensed by MOTAC but the
license has expired / revoked)
Once the application is approved, the company must take the following actions:
(i) To provide business premise within two (2) months from the date of approval letter in
accordance with the following criteria:
• Meetthebusinesspremisesoorspacerequirement
• Thebusiness’sheadocepremisemustbesituatedwithinastructureandshall
have permanent address
• Thebusinesspremisedoesnotsharedwithanyotherbusiness
• Thebusinesspremisemustbelocatedinacommercialareaandnotintheresidential
area.
(ii) To submit required documents for inspection of premises as follows:
• AcopyofOceRentalAgreement(atleast1yearperiod)/“Sales&Purchase”(S&P)
if the premise is owned by the company
• Asketchoftheoorplan
6
Tourism and Travel Related Services
• Premisephoto(inside&outsideofpremisearea)
(iii) To submit a copy of the tourism association’s membership certicate recognised by
MOTAC
(iv) Tosubmitacopyof“Travel&TourManagementCourse”certicate:
• Atleastone(1)representativeofthecompany(keypost)mustattendTTMCwhich
is organized by Tourism Training Institute recognised by MOTAC
(v) To pay the license fee:
• Afterallrequirementsimposedaremet
2.2 Renewal of Licence
• Applyrenewalwithin60daysbeforetheexpirydate(asperSec.32Act482)
• Renewalsubmittedafterexpirydatewillbecompounded
• SubmittherenewalofHeadQuarterandBranchOcelicenseforapprovalsimultaneously
• BoardofDirector/KeyPersonneltoattend“Travel&TourEnhancementCourse”(TTEC)
• Freefromcompound(AIP1992/APKP1999)
Requirements For Licence Renewal
2.3 Equity Policy
• As of 2 September 2014, foreign equity ownership is restricted to company (not
individual)
• Companies with foreign equity ownership are only allowed to apply for Inbound &
Ticketing licenses
• Foreign company must be an established tour operating company in the respective
3 YEARS 2 YEARS 1 YEAR
•Completedocument
•Auditednancial
account shows the net
prot after tax
•Balanceofequity
(statement of changes
in equity) comply with
the minimum paid-up
capital required
•Completedocument
•Auditednancialaccount
shows the net losses for
the current year
•Balanceofequity
(statement of changes in
equity) comply with the
minimum paid-up capital
required
•Completedocument
•Balanceofequity(statement
of changes in equity) does not
comply with the minimum paid-
up capital required
•Insucientassettomeet
company’s liabilities (balance
sheet)
7
Tourism and Travel Related Services
country (endorsed by Tourism Malaysia Oce/Malaysian Embassy/Malaysian High
Commissioner)
• 100%foreignequityownershipisrestrictedtoInboundlicenceonly
GUIDELINES FOR EQUITY AND PAID-UP CAPITAL REQUIREMENTS FOR MALAYSIAN /
FOREIGNER IN TOUR OPERATING AND TRAVEL AGENCY BUSINESS
(NEW GUIDELINES CAME INTO FORCE ON 2 SEPTEMBER 2014)
No. Type of
License
Equity
Ownership
Maximum
Shareholding
Location
of Premise
Minimum
Paid-up
Capital
1. Inbound Foreign Company
(ASEAN/Non
Asean)
100% City/Rural RM 1,500,000
2. Inbound &
Ticketing
Foreign Company
(ASEAN)
70% - Singapore/
Cambodia only
51% - Except
Singapore &
Cambodia
City/Rural RM 1,000,000
3. Inbound &
Ticketing
Foreign Company
(Non ASEAN)
30% City/Rural RM 500,000.00
4. Outbound Foreign Company
(ASEAN/Non
Asean)
Not Allowed Not
Applicable
Not Applicable
5. Inbound Citizen/Local
Company
100% City
Rural
RM 200,000
RM 50,000
6. Outbound Citizen/Local
Company
100% City/Rural RM 200,000
7. Ticketing Citizen/Local
Company
100% City
Rural
RM 200,000
RM 100,000
8. Inbound &
Outbound
Citizen/Local
Company
100% City/Rural RM 200,000
9. Inbound &
Ticketing
Citizen/Local
Company
100% City
Rural
RM 200,000
RM 150,000
10. Outbound
& Ticketing
Citizen/Local
Company
100% City/Rural RM 200,000
11. Inbound,
Outbound
& Ticketing
Citizen/Local
Company
100% City/Rural RM 200,000
8
Tourism and Travel Related Services
2.4 Letter Of Support For Expatriates
- Companies providing tourism and travel related services can apply for Letter of Support
for Expatriates from the Ministry of Tourism and Culture (MOTAC) for expatriate posts,
namely key posts.
- However, the endorsement of the application for expatriates is given by the Malaysian
Immigration Department
- Terms and Conditions of the application for Letter of Support for Expatriates are as
follows:
• 1additionalexpatriateisallowedforeverybranchlicence
• Allowedforkeyposition(minimumsalaryofRM5,000.00/month)
• Possessacademicqualicationintourism/otherrelevantelds
• Satisfactoryhealthcondition
• Ifexpatriateisashareholder–minimumshareholdingis10%
2.5 Specic Immigration Procedures
Companies providing tourism and travel related services can apply for expatriate posts,
namelyKeyPostsandTimePosts.Fortheapplicationforexpatriateposts,companiesareto
comply with the following minimum paid-up capital:
No. Equity Paid-Up Capital
1
100% Locally owned RM 250,000
2
Jointly Owned By Foreign & Local RM 350,000
3
100% Foreign owned RM 500,000
Applications should be submitted to the Ministry of Tourism and Culture (MOTAC). Upon
approval, companies should forward their applications for Employment Passes to the
Immigration Department for endorsement.
2.6 Tax Incentive
Tax Exemption for Tour Operators
• ThisincentiveisonlyapplicabletotouroperatorslicensedbytheMinistryofTourism
and Culture Malaysia (MOTAC).
• TheincentiveisavailableuntiltheYearofAssessment2020.
• ClaimsshouldbesubmittedtoIRB.
9
Tourism and Travel Related Services
(a) Foreign Tourists
• Tour operators who bring in at least 750 foreign tourists in groups in a year
inclusive of tours that enter and exit the country by air, sea or land transportation,
will be exempted from tax in respect of income derived from the business of
operating such tours.
(b) Local Tourists
• Companiesthatorganizedomestictour packagesforatleast1,500 localtourists
per year qualify for tax exemption on the income earned.
• A domestic tour means any tour package within Malaysia participated by local
tourists (excluding inbound tourists) by air, land or sea transportation involving
at least one night’s accommodation.
3. TOURISM VEHICLE BUSINESS
‘Tourism vehicle’ means an excursion bus or hire and drive car.
‘Tourism vehicle business’ means the business of operating or letting out for hire a tourist
vehicle.
Based on Section 4, Tourism Vehicles Licensing Act, 1999, tourism vehicle is required to be
licensed.
“(a) No person shall carry on or hold himself out as carrying on tourism vehicle business
except a company which is licensed under the Tourism Industry Act, 1992 and which
holdsavalidlicencegrantedunderthissection.”
3.1 Licensing and Registration
A company can apply for Tourism Vehicle Business License, either Excursion Bus License or
Hire and Drive Car License (applicable for applicant in Sabah, Sarawak and Labuan only).
(i) For Application for Excursion Bus License
A company intending to apply for Excursion Bus License must at least possess an
inbound business licence approved by the Commissioner of Tourism under the Tourism
Industry Act, 1992.
Application requirements and form can be obtained from MOTAC website at www.
motac.gov.my
(ii) For Application for Hire and Drive Licence
10
Tourism and Travel Related Services
A company intending to apply for Hire and Drive Licence must at least possess an
inbound business licence approved by the Commissioner of Tourism under the Tourism
Industry Act, 1992.
Application requirements and form can be obtained from MOTAC website at www.
motac.gov.my
(iii) Other Approvals
Applications to amend the Terms and Conditions of Excursion Bus/Hire and Drive
Car Licence, Foreign Excursion Bus Licence to Enter Malaysia and Exemption of Tourist
Guide in Excursion Bus can be considered.
Amendments on Terms and Conditions of Excursion Bus/Hire and Drive Cars
Licence
Type of amendments:
(a) Amendments on the name of company
(b) Amendments on the address of company
(c) Change on vehicle’s engine/chassis number
(base on changes recorded in vehicles registration card)
(d) Replacement of vehicles
(Replacement of old vehicles by new vehicles or replacing of vehicle that have
exceeded the age permitted)
(e) Modication on number of seats
For Bus:
- 8–16passengers
- 17 – 26 passengers
- 27 – 40 passengers
- 44 passengers (leg room must be at least 15.6’)
- 45 passengers – will be considered on a case by case basis
For Hire and Drive Car:
- Not more than 10 passengers including driver
(f) Change of Road Transport Department (JPJ) code (Changing of State’s code
number to facilitate vehicles’ registration).
A Company intending to amend on Terms and Conditions of Excursion Bus/Hire and Drive
11
Tourism and Travel Related Services
Car Licence is required to submit its application to MOTAC
Application requirements and form can be obtained from MOTAC website at www.motac.
gov.my
Application for Foreign Excursion Bus Licence
A company intending to apply for foreign excursion Bus Licence to enter Malaysia is required
to fulll the following conditions:
• Companymustberegisteredandlicensedasatouragencybytherelevantauthorities
initshomecountry;
• Excursionbustobelicensedmustberegisteredasacommercialvehicleinaccordance
withanylandtransportationlawenforcedbytherespectivecountry’stransportauthority;
• Applicationmustbesubmittedatleastve(5)daysbeforethedateofentry;and
• Excursionbusshallbeusedexclusivelyfortheconveyanceoftouristsandinconsideration
of payment which has no fare stages.
Application form can be downloaded from MOTAC website at www.motac.gov.my
Exemption of Tourist Guide in Excursion Bus
Exemption of Tourist Guide in Excursion Bus can be considered for the following purposes:-
(a) Point to point transfer which does not involve tourist attractions, eg. sending tourist
tojettytogotoislandresort;
(b) Transferservice,e.g.conference,crewtransfer,exhibition;
(c) Religiousceremony;
(d) Wedding;
(e) Sports;and
(f) Any reasonable purposes determined by the Ministry such as death, visit and festival.
Application for exemption of tourist guide can be made through a tour agency which is
registered under MOTAC. Exemption of tourist guide is permitted only for Excursion Buses
that carry domestic tourists. No exemption of tourist guide is permitted for Excursion Buses
that carry foreign tourists except for crew transfer purpose. Application is to be made through
a formal letter by the tour agency.
Further details can be obtained from MOTAC website at www.motac.gov.my
3.2 Equity Policy
The Government had announced on 22 April 2009 that the following tourism services would
be among the 27 services sub-sectors that would be liberalised:
12
Tourism and Travel Related Services
• ThemePark(CPC96194)
• ConventionandExhibitionCentre(seatingcapacityofabove3,000)(CPC87909)
Please refer to MITI website www.miti.gov.my for information on liberalisation.
3.3 Tax Incentive
Tax Incentive for Car Rental Operators
Operators of car rental services for tourists are eligible for full excise duty exemption on the
purchase of national cars and to enable tourists to explore challenging destinations, tour
operators are also eligible for a 50% excise duty exemption on locally assembled 4WD vehicles.
Applications should be submitted to the Ministry of Finance.
4. MALAYSIA MY SECOND HOME (MM2H) AGENT LICENCE
MM2H Programme
The Malaysia My Second Home (MM2H) Programme is an initiative by the Government
of Malaysia to allow foreigners who fullll certain criteria, to stay in Malaysia for as long as
possible on a multiple entry Social Visit Pass.
The Social Visit Pass is initially for a period of ten (10) years, and is renewable.
4.1 Eligibility
It is open to all foreigners from countries that has diplomatic relations with Malaysia regardless
of race, religion, gender or age.
Applicants are allowed to bring their spouses and unmarried children below the age of 21 as
dependents.
MM2H Agent refers to businesses providing all or any of the following services:
(i) Facilitation during MM2H application process
(ii) Assistance to participants relocation to Malaysia
(iii) Any other additional service deemed required
13
Tourism and Travel Related Services
Type of Services oered by Licensed Companies under MM2H Programme
Type Of Services Oered Proposed Fee Structure
APPLICATION
PROCESS
Provide latest information regarding the terms and
conditions to foreign citizens who are interested to join the
MM2H Programme
Prepare application
together
with the required
documents
for submission to the
I
mmig
r
a
tion/MOTAC.
This
includes
ensur
ing
that the application form
is
properly
lled
up and
all
the
r
equir
ed
documents
are
attached
and
c
er
tied
Signed a Personal
B
ond
with the Government of
Malaysia
t
o
guarantee
the good conduct of the participants
thr
oughout
their stay in Malaysia under this
pr
og
r
amme
.
If
the
lic
ensed
companies clients are caught violating the
terms and
c
onditions
of their stay in Malaysia, they are
required to arrange for immediate
deportation
of their
clients back to their home
c
oun
tr
y
,
including purchase of air
tickets
,
food and
lodg
ing
,
et
c
.
I
nf
or
m
clients about the status of their application until
they
received the Conditional Approval letter from
I
mmig
r
a
tion
Department.
Advise
clients to come to
Malaysia
within 6
months
from the date of approval of the Conditional
Approval letter
t
o
full
all the required terms and
c
onditions
.
ASSIST PARTICIPANTS TO
RELOCATE TO
MAL
A
Y
SIA
Arrange for the
transportation
and
accommodation
for successful applicants upon their arrival in Malaysia
Assist
successful applicants
t
o:
- open a xed deposit
ac
c
oun
t
- arrange for insurance policy and medical report
(if
r
equired)
Bring successful applicants to the Immigration Department
(or to the MM2H Centre once the Immigration Unit (MM2H)
which is part of MM2H Centre to pay the required visa fees
and have their passport stamped with the Malaysia My
Second Home sticker.
Alert participants on the types of incentives they can now
apply
for under this
programme
(
house and maid).
14
Tourism and Travel Related Services
ADDITIONAL
SERVICES
Negotiable
and
depends
on
the
acceptance
of
clien
ts
.
House rental or house purchase
*
Application for
AP
for imported
car
Application for
housemaid
Arrangement to bring
clien
ts
’
personal
belongings
to Malaysia
Application for
student
passes for children of
MM2H
par
ticipan
ts
who wish to study in Malaysia
Application to withdraw part of the xed deposit after a
per
iod
of one
(1)
year for the purchase of
house
,
car
education
and
medical
pur
pose
Application for
telecommunication
and utilities
ser
vic
es
(t
elephone
,
elec
tr
icit
y
,
water
supply
,
et
c
.)
Any
other service upon specic
r
equest
* Note: According to the Board of Valuers, Appraisers and Estate Agents Act, 1981, only registered
Real Agents and/or its Authorised Negotiators are legally permitted to promote and conduct Real
Estate Agency Services which include buy, sell, rent or lease of any real estate property.
Agents must be private limited companies incorporated under the Companies Act, 1965 or
Companies Act, 2016
On assistance to relocate MM2H participants to Malaysia, MM2H agents will assist in visa fee
and passports stamped with MM2H stickers at:-
MALAYSIA MY SECOND HOME CENTRE IMMIGRATION UNIT
Ministry of Tourism and Culture Malaysia,
Level 10, No. 2, Tower 1,
Jalan P5/6, Presint 5,
62200 W.P. Putrajaya,
MALAYSIA
ANNOUNCEMENT FOR TAX INCENTIVE UNDER MM2H PROGRAMME
The Government has decided to abolish the tax incentive on the purchase of a new locally
assembled vehicle or the import of a pre-owned private vehicle into Malaysia under MM2H
Programme.Therefore,thistaxincentivewillbeterminated eectivefrom1January 2018.
However, Ministry of Finance will give special consideration to MM2H participant with rst
MM2H’s Visa approved beginning 1 January 2017 until 31 December 2017 to submit complete
application via Sistem Maklumat Pengurusan Cukai / Sistem Maklumat Pengurusan Cukai
KerajaanMalaysianotlaterthan31December2018.
15
Tourism and Travel Related Services
4.1 Licensing and Registration
• A company intending to apply for inbound (MM2H) license is required to submit its
application through Tourism Industry Licensing System (SPIP) at www.spip.gov.my.
• FurtherdetailscanbeobtainedfromMOTACwebsiteatwww.motac.gov.my
• Applicantmust bea privatelimitedcompany incorporatedundertheCompaniesAct,
2016.
• Applicantmustput(MM2H)aspartofcompany’sname.
• ApplicantmustbefreefromanycompoundsunderAIP1992.
• Onceapplicationisapproved,thecompanymusttakethefollowingactions:
(i) To provide business premise within two (2) months from the date of approval letter in
accordance with the following criteria:
• Meettheconditionsofbusinesspremisesarea
• Operational premise of the Head Quarter Oce are structured and have permanent
address
• Thebusinesspremisedoesnotsharedwithanyotherbusiness
• Thebusinesspremisemustbelocatedinacommercialareaandnotintheresidential
area.
(ii) To submit required documents for inspection of premises as follows:
• AcopyofOceRentalAgreement(atleast1yearperiod)/“Sales&Purchase”(S&P)if
the premise is owned by the company
• Asketchoftheoorplan
• Premisephoto(inside&outsidepremisearea)
(iii) To submit a copy of the tourism association’s membership certicate recognized by
MOTAC
(iv) To submit a copy of “Travel & Tour Management Course” (TTMC) certicate:
• Atleastone (1)representativeof thecompany(keypost) must attendTTMC whichis
organized by Tourism Training Institute recognized by MOTAC
(v) To pay the license fee:
• Afterallrequirementsimposedaremet
16
Tourism and Travel Related Services
4.2 Equity Policy
Paid up capital requirement (for all locations)
• 100%localownership:RM50,000.00
5. FINANCIAL ASSISTANCE
5.1 Tourism Development Infrastructure Fund
The Tourism Development Infrastructure Fund has been established to support the
Government’s eorts in developing the tourism sub-sector. To apply for the fund the following
criteria apply:
Eligible Applicant:
• ApplicantsmustberegisteredundertheCompaniesAct,1965orCompaniesAct,2016
Companies Commission of Malaysia Act, 2002 or/and Companies Co-operative Act, 1970
or Co-operative Act, 1993.
• Applicantsmustbemajority-ownedbyMalaysians(atleast51%)
• Existing and new enterprises carrying out or planning to carry out tourism
infrastructure projects are eligible
• Applicants must have a minimum paid-up capital of RM5.0 million or minimum of
20% from the total loan applied whichever is higher
Eligible Project:
Projects must be located in Malaysia and any tourism infrastructure projects that contribute
to the development of the tourism industry are eligible. Priority shall be given to the following
types of projects:
• Integratedorregionaltourismcentres/attractions/facilitiesandcomplexes
• Conventionhall
•Galleryandinformationcentre
•F&Borstoresrelatedtotourism.
• Hotels, chalets, resorts and other forms of accommodation with special ‘theme-
based’ development for example water theme park, jungle theme park, medical
tourism, eco-tourism, edu-tourism or sports tourism
• Facilities related to medical tourism, eco/agro tourism, eco/agro-tourism and sports
tourism
•Urbanredevelopmenttoenhancetouristspot
• Integration of various transport mode, limousine terminal and pedestrian walks/
crossingstoprovideecienturbanconnectivityfrompointtopoint
17
Tourism and Travel Related Services
• Riverandwaterfrontdevelopment
• Themeand/orrecreationparksandcentressuchaswaterthemepark,heritage,museum,
safariparks,zoo,owergarden,theatre/culturalshow/culturecentreandotherspecial
concept theme parks
• Marinaandmarinetourism
• Otherfacilitiesthatsupporttheabovewhichincludeaccessroads,golfcourse,cablecars,
jetties, airstrips, boats or ferries
• OthersectorsrelatedtotourisminfrastructureasidentiedfromtimetotimebyMOTAC
and/or the Bank.
NON PERMISSIBLE LOAN
• Acquisitionshares
• Existingassetsofthecompany
• Takingoverexistingproductivecapacity
• Financingofcasinos
PROJECTS THAT CANNOT BE FINANCED
Projects Loan cannot be used to nance
Integrated or regional tourism centres/
attractions/facilities and complexes
Games machines, Riding machines, Mobile-jet
ski, Gym equipment
Theme Park Games Machines
Safari Animals
Time sharing apartment and leaseback
The fund is administered by the Bank Pembangunan Malaysia Berhad and its terms and
conditions are as follows:
Loan amount:
Minimum - RM5 million
Maximum- RM100millionoruptoamaximumof80%ofthetotalprojectcostwhicheveris
lower is allowed (The minimum loan amount will be received after one year of
implementation i.e. after getting feedback from the industry).
Lending Rate:
4% - 6% per annum computed based on annuity, yearly rest basis
Tenure of Loan:
Maximum loan period up to 20 years
18
Tourism and Travel Related Services
Repayment terms:
Theperiodforrepaymentwillbedeterminedbasedontheprojectcashow,theeconomic
life of the assets nanced and/or terms of repayments as stipulated by the fund provider.
Grace period may be given and is determined based on the gestation period and the cash
owoftheproject.
BASIC INFORMATION REQUIRED TO APPLY FOR TOURISM DEVELOPMENT INFRASTRUCTURE
FUND
• Applicationletter
• TourismDevelopmentInfrastructureFundApplicationForm(mustbetyped)
Company prole shall include:
• Form9orBusinessRegistrationForm*
• Form24(Shareholder)-completesinceitwasregistered*
• Form49(BoardofDirector)*
• MemorandumofArticlesofAssociation*
• SSMe-info
• ProleofBoardofDirectors,shareholdersandkeymanagementpersonnel
• Lastthree(3)yearsauditednancialreport
* must be certied by company secretary
Project proposal shall include:
• Detailedprojectcostsandproposedsourcesofnancing
• Feasibilitystudyoftheprojectpreparedbyanindependentconsultant
Other Documents
• Applicantsarerequiredtosubmitadditionaldocumentsbasedonapplicant’sproject.
The completed application form must be submitted to:
Secretary General
Ministry of Tourism and Culture Malaysia
Industrial Development Division
Level 14, Tower 1
No. 2, Jalan P5/6, Presint 5
62200 PUTRAJAYA
Website: www.motac.gov.my
19
Tourism and Travel Related Services
For further inquiries or consultation session regarding TIDF, please contact Dana Pelancongan
03–88917480/7492/7469oremailto[email protected]v.my
Applicant is encourage to get consultation session regarding terms and condition of the loan
from BPMB as follow:
Bank Pembangunan Malaysia Berhad
Menara Bank Pembangunan, Bandar Wawasan
1016,JalanSultanIsmail,PetiSurat10788
50724KUALALUMPUR
Tel:03-26113309/3084
Fax:03-26985701
Website: www.bpmb.com.my
5.2 Special Tourism Fund
The Special Tourism Fund has been established to support the Government’s eorts in
developing the tourism sub-sector. To apply for the fund the following criteria apply:
Eligible Applicant :
• MalaysianownedcompaniesregisteredunderCompaniesCommissionofMalaysiaAct
2002 or Co-operative Act 1993 (minimum 51% owned by Malaysian) and categorised as
‘SMEs’.
• HaveshareholdersfundnotmorethanRM10Million.
• Existingbusinessoperatesformorethan2yearsareeligible.Forthosehavinglessthan2
years in operations, applications will be assessed on case to case basis.
• AnyotherconditionsimposedbytheBankandMOTAC.(i.e.endorsementfromMOTAC,
such as Letter of Support etc).
Eligible Project:
Projects must be located in Malaysia and any tourism infrastructure projects that contribute
to the development of the tourism industry are eligible. Priority shall be given to the following
types of projects:
• Allprojectsclassiedastourismrelatedactivitiesincludingmanufacturingofproducts
relatedtotourism;
• Projects must be registered with MOTAC as tourism project (where applicable), or
endorsedasatourismprojectsbyJawatankuasaPinjamanTabungPelancongan(JKPTP),
MOTAC;
20
Tourism and Travel Related Services
• Tourismprojectsthatarebeingpromotedbythegovernmentincluding(butnotlimited
to)recreational,sports,health,educationetc;
• Buildingneworadding,widensandrenovatetourismandhistoricalproperties(suchas
hotels,motels,chalet,lodgeandresthouse);
• Providetransportservicesrelatedtotourismsuchascoach,carrental,ferry,boatetc;
• Tourism resorts andplaces(includesrenovationandlandscape work)i.e. themepark/
recreationparksuchoralgarden,safariparkandtourismintegratedcomplexes;
• Provides facilities relatedtotourismsuch as restaurantwhich providesculturalshow,
souvenirs and hand-craft centers, free-duty shop, recreation equipments at tourism area
such as bicycle, marine equipments and others (except golf equipment) purchasing of
equipmentsfortheculturegroup,galleryandmuseumandMalaysiancultures;
• Workingcapitalforthetourismactivities;and
• OtherrelatedtourismprojectwhichisdeterminedbyGovernment.
ADDITIONAL TERMS AND CONDITION
• TherecipientsofnancingunderSFTthatrequiredspecicinterventionwillbeeligible
for a training program conducted by the Bank. The arrangement of the training will be
notied from time to time.
SECURITY ACCEPTABLE TO THE BANK (BUT NOT LIMITED TO THE
FOLLOWINGS):-
• Firstxedlegalcharge;
• Debentures;
• Thirdpartycharge(ifrequired);
• JointandseveralguaranteeofDirectors/shareholders(intheirpersonalcapacity);
• CorporateGuarantee;
• BankGuarantee;
• Assignmentofrightofprojects,insurance,assignmentofrevenue/proceedsetc.
The fund is administered by the Small Medium Enterprise Development Bank Malaysia Berhad
(SMEBank)anditstermsandconditionsareasfollows;
Loan amount:
Minimum - RM250,000
Maximum - RM30.0 million per project or 90% of the project cost (excluding the
cost of land), whichever is lower.
21
Tourism and Travel Related Services
Lending Rate:
From BFR + 0% p.a up to BFR + 2.5 p.a.
Changing Of Prot Rate – The bank may change the rate from time to time.
Tenure of Loan:
Maximum of 12 years (not exceeding 22 Oct 2029)
REPAYMENT TERMS:
• Theperiodforpaymentwillbedeterminedbasedontheprojectcashow,theeconomic
life of the assets nanced and/or terms of repayment as stipulated by the Fund provider.
• Graceperiodmaybegivenandisdetermined basedonthegestationperiodandthe
cashowoftheproject.
TYPE OF FINANCING:
• Shariahbasednancing.
TYPE OF FACILITIES:
• Fixedassetnancing.
• Workingcapital/revolvingcapitalnancing.
• Guarantee.
BASIC INFORMATION REQUIRED TO APLLY FOR SPECIAL TOURISM FUND
• Applicationletter.
• SpecialTourismFundApplicationForm(mustbetyped).
Company Prole shall include:
• Form9orBusinessRegistrationForm*;
• Form24(Shareholder)-completesinceitwasregistered*;
• Form49(BoardofDirector)*;
• MemorandumofArticlesofAssociation*;
• SSMe-info;
• ProleofBoardofDirectors,shareholdersandkeymanagementpersonnel;
• Lastthree(3)yearsauditednancialreport.
*must be certied by company secretary.
22
Tourism and Travel Related Services
Project Proposal shall include:
• Detailedprojectscostandproposedsourcesofnancing;and
• Feasibilitystudyoftheprojectpreparedbyanindependentconsultant.
Others Documents:
Applicants are required to submit additional documents based on applicant’s project.
The completed application form must be submitted to:
Secretary General
Ministry of Tourism and Culture Malaysia
Industrial Development Division
Level 14, Tower 1
No. 2, Jalan P5/6, Presint 5
62200 PUTRAJAYA
Website: www.motac.gov.my
For futher inquiries or consultation session regarding SFT, please contact Dana Pelancongan
03–88917480/7492/7469oremailto[email protected]v.my.
Applicant is encourage to get consultation session regarding terms and conditions of the loan
from SME Bank as follow :
Small Medium Enterprise Development Bank Malaysia Berhad (SME Bank)
Menara SME Bank
Jalan Sultan Ismail
50250KUALALUMPUR
Tel.:03–26152843/2020CallCentre:03–26037700
Fax:03–26981748
Website: www.smebank.com.my
6. OTHER INCENTIVES
6.1 Double Deduction on Overseas Promotion
Hotels and tour operators qualify for a double deduction on the expenditure incurred for
promotional activities overseas. The qualifying expenditure is:
• expenditureonpublicityandadvertisementsinanymassmediaoutsideMalaysia
• expenditureonpublicationofbrochures,magazinesandguidebooks,including
delivery costs that are not charged to the overseas customers
• expenditureonmarketresearchintonewmarketsoverseas,subjecttothepriorapproval
of MOTAC.
23
Tourism and Travel Related Services
• expenditurethatincludesfarestoanycountryoutsideMalaysiatonegotiateorsecure
a contract for advertising or participating in trade fairs, conferences or forums
approved by MOTAC. Such expenses are subject to a maximum of RM300 per day
for lodging and RM150 per day for food for the duration of the stay overseas
• expenditureinorganisingtradefairs,conferencesorforumsapprovedbyMOTAC
• expenditureonthemaintenanceofsalesocesoverseasforpurposesofpromoting
tourism in Malaysia
Claims should be submitted to IRB.
6.2 Double Deduction on Approved Trade Fairs
Companies are also eligible for a double deduction on expenditure incurred in participating
in an approved international trade fair in Malaysia.
Claims should be submitted to IRB.
6.3 Tax Exemption for Promoting International Conference and Trade Exhibitions
(a) Local companies which promote international conferences in Malaysia qualify for tax
exemption on the income earned from bringing at least 500 foreign participants into the
country.
(b) Income earned from organising international trade exhibitions in Malaysia qualies for
tax exemption as long as the exhibitions are approved by MATRADE and the organisers
bring in at least 500 foreign visitors per year.
Claims should be submitted to IRB.
6.4 Deduction on Cultural Performances
Expenditure incurred by companies promoting and managing musical or cultural groups
and sponsoring local and/or foreign cultural performances as approved by MOTAC, qualies
for a single deduction.
To further encourage the private sector to sponsor local arts, cultural and heritage
performances and shows, the ceiling for deductions for expenditure incurred in sponsoring
such performances and shows has been increased from RM300,000 to RM500,000. However,
the ceiling for deductions allowed on foreign performances and shows remains at RM200,000
per year.
Claims should be submitted to IRB.
6.5 Incentives for Luxury Yacht Industry
• Companies that carry out repair and maintenance activities for luxury yachts in the
island of Langkawi, Malaysia are eligible for an income tax exemption of 100% for ve
24
Tourism and Travel Related Services
years. Applications should be submitted to the Ministry of Finance.
• Companiesthatprovidecharteringservicesofluxuryyachtsinthecountryareeligible
for income tax exemption of 100% for a period of ve years. Claims should be submitted
to IRB.
6.6 Incentive for the Promotion of Healthcare Travel
(i) Incentive for Private Healthcare Facilities
Companies that establish new private healthcare facilities or existing private healthcare
facilities undertaking expansion/modernisation/refurbishment for purposes of promoting
healthcare travel are eligible to apply for an income tax exemption equivalent to Investment
Tax Allowance (ITA) of 100% on the qualifying capital expenditure incurred within a period
of ve (5) years. The allowance can be used to oset against 100% of the statutory income
for each year of assessment. Any unutilised allowance can be carried forward to subsequent
years until fully utilised.
For purposes of this incentive, private healthcare facilities means private hospitals or
ambulatory care centres.
Eligibility Criteria
(a) The company must be incorporated in Malaysia under the Companies Act, 1965 or
Companies Act, 2016
(b) The private healthcare facility must be approved and licensed by the Ministry of Health
(MOH) Malaysia
(c) The private healthcare facility must be registered with the Malaysia Healthcare Travel
Council (MHTC) as ‘A Healthcare Facility for the Promotion of Healthcare Travel’.
(d) For each private healthcare facility:-
(i) The qualied healthcare travellers shall comprise of at least 5%
[1]
or 10%
[2]
of its
totalpatientsforeachyearofassessment;and
(ii) At least 5%
[1]
or 10%
[2]
of its gross income from that qualifying project for each year
of assessment is generated from healthcare travellers.
[1]
Eective from 1 January 2015 – 31 December 2017, for each private healthcare
facility (Budget 2015)
[2]
Eectivefrom1January2018–31December2020,foreachprivatehealthcare
facility(Budget2018)
(e) For a new private healthcare facility project:
(i) ApplicationmustbesubmittedtoMIDApriortocommencementofbusiness;and
(ii) Application must be submitted to MIDA together with the approval for establishment
(Form 2) from MOH.
25
Tourism and Travel Related Services
(f) For expansion / modernisation / refurbishment project of an existing private healthcare
facility:
(i) Application must be submitted to MIDA before the rst qualifying capital expenditure
isincurredforthepurposeofexpansion/modernisation/refurbishmentproject;
and
(ii) Application must be submitted to MIDA together with the approval for expansion /
modernisation / refurbishment (Form 6) from MOH.
(g) The incentive is applicable for applications received by MIDA not later than 31 December
2020.
Note: Denition of ‘healthcare traveller’ –
i. A non-Malaysian citizen who participates in the Malaysia My Second Home (MM2H)
Programmeandhisdependents;
ii. An expatriate who is non-Malaysian citizen holding a Malaysian work permit and his
dependents: or
iii. A non-Malaysian citizen who visits and receives treatment from private healthcare
facilities in Malaysia.
Qualifying Capital Expenditure
For the purpose of ITA, qualifying capital expenditure in relation to private healthcare facilities
means capital expenditure incurred in relation to building, plant and machinery, the medical
devices or other facilities in accordance with criteria as set out by the Ministry of Finance and
used for the purpose of the qualifying project and shall be veried by the Ministry of Health.
(ii) Additional Incentives for Healthcare Travel
Double deduction incentive on the expenditures incurred for the purpose of obtaining quality
accreditation for private healthcare facility which registered as the member of Malaysia
Healthcare Travel Council (MHTC).
Private hospital, private ambulatory care centre
[1]
and private dental
[1]
which registered as
the member of the Malaysia Healthcare Travel Council (MHTC) is entitled to enjoy the double
deduction incentive on the expenditures incurred for the purpose of obtaining quality
accreditation from the following quality accreditation bodies / organisations:-
No. Accreditation Bodies / Organisations Country of Origin
1. Joint Commission International Accreditation (JCIA) United States of America
2. Malaysian Society for Quality in Health (MSQH) Malaysia
3. CHKSAccreditationUnit(CHKS) UnitedKingdom
4. The Australian Council on Health Care Standards
(ACHS)
Australia
5. Accreditation Canada Canada
[1] Eectivefromyearofassessment2018(Budget2018)
26
Tourism and Travel Related Services
The double deduction incentive is given under the provision of Section 34(6)(ma), Income Tax
Act, 1967 starting from 4 February 2016.
The double deduction incentive is subject to the following conditions:-
(a) Applicant is responsible to ensure that the International Society for Quality in Health
Care (ISQua)’s recognition awarded to the above accreditation bodies / organisations are
legitimateandvalidduringtheyearofassessment;
(b) Applicant must obtain full accreditation from the above accreditation bodies /
organisations and to ensure the full accreditation awarded is legitimate and valid during
theyearofassessmentandrecognisedbyISQua;
(c) ApplicantmustcomplywiththerulesandregulationsdeterminedbyMHTC;and
(d) Applicant must comply with the guidelines and regulations determined by the Inland
Revenue Board (IRB).
Claims should be submitted to IRB.
7. GENERAL AGREEMENT ON TRADE IN SERVICES (GATS), ASEAN
FRAMEWORK AGREEMENT ON SERVICES (AFAS) AND FREE TRADE
AGREEMENTS (FTAS)
The updates and information on Schedule of Special Commitments of GATS, AFAS and FTAs is
available in MITI’s website www.miti.gov.my
TOURISM AND
TRAVEL RELATED
SERVICES
MALAYSIA: INVESTMENT IN THE SERVICES SECTOR
Malaysian Investment Development Authority
MIDASentral,No.5,JalanStesenSentral5,KualaLumpurSentral,50470KualaLumpur,Malaysia
Tel: (603) 2267 3633 Fax: (603) 2274 7970 Website: www.mida.gov.my
E-mail:investmala[email protected].my
2019