Nation

Airbnb clarifies service tax, fee to Malaysian consumers

JOHOR BARU: Airbnb has clarified that it applies a nightly fee of RM10 per listing towards Malaysia's tourism tax and imposes an eight per cent service tax on its services.

This follows Malaysian Association of Hotels (MAH) Johor chapter chairman Ivan Teo's call for the government to regulate accommodation services such as Airbnb first following the sales and service tax (SST) hike.

Airbnb Southeast Asia, India, Hong Kong, and Taiwan public policy head Mich Goh said the home rental platform had collected and remitted billions in tourist and hotel taxes globally.

"In Malaysia, we collect and remit the RM10 tourism tax per listing per night. We also apply an eight per cent service tax to Airbnb service fee to our Malaysian customers," she said.

She added Airbnb also sends reminders to their Malaysian hosts based on their annual income of their tax obligations, as the hosting services may be subjected to taxation.

Earlier, Teo told the New Straits Times that the government should first regulate accommodation services such as Airbnb.

He was responding to the increase in SST from six to eight per cent which took effect on March 1, this year.

He claimed Airbnb operators are not subjected to service tax, and were not required to deal with licensing issues, thus enabling them to minimise their overhead operational cost.

This, he said, resulted in hotel-operators losing guests due to increased room charges due to the higher service tax, while tourists opted for cheaper lodgings.

Goh said that Airbnb is committed to work-hand-in-hand with the government, industry stakeholders, and local communities to drive sustainable tourism growth, foster economic empowerment and promote an inclusive recovery.

"We are dedicated to drive positive tourism growth in Malaysia and support the nation's tourism ambitions, which includes welcoming 35.6 million tourists by Visit Malaysia 2026.

Goh, said a recent Oxford Economics study revealed Airbnb contributed significantly to the country's tourism industry economic contribution.

In 2022, Airbnb guests spent about RM7 billion across various sectors, including restaurants, local businesses, and transportation, which contributed over RM5 billion to Malaysia's GDP and supported about 57,000 jobs.

While in 2023, its women host earned over RM217.9 million, via its home sharing incentives.

She said Airbnb also played an important role in dispersing travel beyond traditional tourist hotspots, with cities like Kulim and Kulai.

Airbnb collaborated with the Town and Country Planning Department (PLANMalaysia) to develop a set of guidelines for short-term rental accommodation (STRA) nationwide.

Most Popular
Related Article
Says Stories