Tax incentives for ecotourism operators in Malaysia

Zainol Bidin and Nurhazani Mohd Shariff. (2008) Tax incentives for ecotourism operators in Malaysia. In: Ecotourism in the IMT-GT region: issues and challenges. Penerbit Universiti Utara Malaysia, Sintok, Kedah, pp. 175-190. ISBN 983-328-2725

In future planning and developing ecotourism, governments and non-governmental organizations need to share responsibility and commitment. In particular, ecotourism has quickly developed as the fastest growing segment within the travel and tourism industry. Recent figures show that ecotourism grosses over $335 billion a year worldwide and attracts millions of interested tourists. One of the government responsibilities is to support the development of tourism economic models and develop new economic indicators that define well-being in the context of ecotourism development. To encourage more tourism activities, the government has introduced a lot of incentives for the tourism operators to enjoy and one of them is tax incentives. In Malaysia, tax incentives, both direct and indirect, are provided for in the Promotion of Investments Act 1986, Income Tax Act 1967, Customs Act 1967, Sales Tax Act 1972 and Excise Act 1976. These Acts cover investments in the manufacturing, agriculture, tourism (including hotel) and approved services sectors as well as R&D, training and environmental protection activities. For tourism industry, Malaysian government has provided several main incentives which include: Pioneer Status, Investment Tax Allowance, Incentives for the Luxury Yacht Industry, Double Deduction on Overseas Promotion, Double Deduction on Approved Trade Fairs, Tax Exemption for Tour Operators, Tax Exemption for Promoting International Conferences and Trade Exhibitions, Deduction on Cultural Performances and Incentive for Car Rental Operators. This article will highlight on the tax incentives related to expenditures incurred by ecotourism operators that qualify to claim for income tax purposes. The subject matter is very important for tax planning which enable the operators to reduce their tax liability and consequently increase total profit.

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Abstract

In future planning and developing ecotourism, governments and non-governmental organizations need to share responsibility and commitment. In particular, ecotourism has quickly developed as the fastest growing segment within the travel and tourism industry. Recent figures show that ecotourism grosses over $335 billion a year worldwide and attracts millions of interested tourists. One of the government responsibilities is to support the development of tourism economic models and develop new economic indicators that define well-being in the context of ecotourism development. To encourage more tourism activities, the government has introduced a lot of incentives for the tourism operators to enjoy and one of them is tax incentives. In Malaysia, tax incentives, both direct and indirect, are provided for in the Promotion of Investments Act 1986, Income Tax Act 1967, Customs Act 1967, Sales Tax Act 1972 and Excise Act 1976. These Acts cover investments in the manufacturing, agriculture, tourism (including hotel) and approved services sectors as well as R&D, training and environmental protection activities. For tourism industry, Malaysian government has provided several main incentives which include: Pioneer Status, Investment Tax Allowance, Incentives for the Luxury Yacht Industry, Double Deduction on Overseas Promotion, Double Deduction on Approved Trade Fairs, Tax Exemption for Tour Operators, Tax Exemption for Promoting International Conferences and Trade Exhibitions, Deduction on Cultural Performances and Incentive for Car Rental Operators. This article will highlight on the tax incentives related to expenditures incurred by ecotourism operators that qualify to claim for income tax purposes. The subject matter is very important for tax planning which enable the operators to reduce their tax liability and consequently increase total profit.

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Item Type:	Book Section
Additional Information:	Available at Perpustakaan Sultan Abdul Samad, Universiti Putra Malaysia, 43000 UPM Serdang, Malaysia. G155 M3E19 Call Number
AGROVOC Term:	ecotourism
AGROVOC Term:	taxes
AGROVOC Term:	incentives
AGROVOC Term:	tourism
AGROVOC Term:	business management
AGROVOC Term:	best practices
AGROVOC Term:	local communities
AGROVOC Term:	government agencies
AGROVOC Term:	environmental economics
AGROVOC Term:	economic growth
Geographical Term:	Malaysia
Depositing User:	Ms. Azariah Hashim
Date Deposited:	07 Oct 2024 08:24
Last Modified:	07 Oct 2024 08:24
URI:	http://webagris.upm.edu.my/id/eprint/638

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