MICE Tourism - Malaysia Meeting Planner

The Government also offer tax incentives to tour operators and event organizers as follows:

1.    Double Deduction for Tourism Industry

The following expenditures incurred by hotels and tour operators for overseas promotions are allowed further deduction:

•    Expenditure on publicity and advertisement in any mass media outside Malaysia

 

•    Expenditure on the publication of brochures, magazines and guide books, including delivery costs which are not charged to the overseas customers

•    Expenditure on market research to explore for new markets overseas, subject to the prior approval of the Ministry of Tourism

•    Expenditure which includes fares to any country outside Malaysia for purposes of negotiating or securing  a contract  for advertising or participating in trade fairs, conferences or  forums approved  by the Ministry of Tourism. Such expenses are subject to a maximum of RM300 per day for accommodation and RM150 per day for sustenance

•    Expenditure on organizing trade fairs, conferences or forums in foreign country approved by the Ministry of Tourism. These expenditures are subject to the maximum of RM300 per day for accommodation and RM150 per day for sustenance

•    Maintenance of sales office overseas

2.    Exemption for Tour Operators

Tour operators who bring in at least 500 foreign tourists through group inclusive tours or 1,200 local tourists on domestic tours in the assessed year that is certified by the Ministry of Tourism will be exempted from tax on income earned from the business of operating tours. The tour operators need to be licensed under the Tourism Industry Act 1992. Budget 2007 has extended this incentive until the year of assessment 2011.

3.    Exemption for Fair Organizers

Organizers of International Trade Exhibitions in Malaysia are eligible for tax exemption on income earned from organizing international trade exhibitions. To qualify, the organizer will need to apply for a letter from MATRADE to certify that the fair is approved by MATRADE and the organizer of the international exhibition must bring in at least 500 foreign trade visitors per event.