Malaysia Inbound Tourism Tax Incentive: What Operators Should Check for 2026–2027

Malaysia’s Ministry of Tourism, Arts and Culture (MOTAC) publishes guidance on a 100% income tax exemption on qualifying increased business income from foreign-tourist packages for Years of Assessment 2026–2027. The stated package scope includes transport and accommodation. This is a reason for Malaysian inbound operators to review their records with their tax adviser; it does not establish Hari-Hari’s eligibility or approval.

How the increased-income example works

MOTAC compares RM800,000 of relevant business income in 2026 with RM500,000 in 2025: the increase is RM300,000. That is the potential exempt income in its example, not RM300,000 paid to the operator, a tax saving of that amount, or exemption of all company revenue. The accountant should confirm the applicable income basis and all conditions.

What operators should check now

• Tourist numbers: the webpage says no fewer than 1,000 foreign tourists in the relevant basis period. The application’s auditor declaration says “more than 1,000”; confirm treatment directly with MOTAC if your count is exactly 1,000.
• Accounts and evidence: keep qualifying income separately and reconcile itineraries, invoices, receipts and tourist lists. MOTAC requires passport numbers. Handle identity records securely; never publish them in news articles or public enquiry forms.
• Submission: apply to MOTAC within six months after the company’s financial year ends. Review the official form and checklist, including the valid tourism licence, current SSM information and audited accounts requested there. MOTAC verification remains subject to tax law and LHDN review.
• Practical preparation: assign a booking reference to each completed programme, reconcile traveller counts with operations, and have the accountant compare the relevant periods. Do not assume every enquiry, deposit or booking represents a qualifying foreign tourist or eligible income.

Hari-Hari Travel & Holidays Sdn. Bhd. is a MOTAC-licensed Malaysia inbound travel agency and DMC, licence 12654. Overseas travel agents can contact us for customised family, school, corporate, incentive and group programmes. We coordinate travel arrangements; tax eligibility should be assessed separately. Discuss a Malaysia itinerary

Reviewed on 8 October 2026. The official page displays a 2 October footer update; this is not evidence of a new policy announcement that day. General industry information, not individual tax advice. Confirm eligibility, calculation and submission requirements with MOTAC and a qualified tax adviser. Photos illustrate destinations, not an approval or endorsement.