Updated Food and Beverage Guidelines (16 April 2024)
The Service Tax reintroduced on 1 September 2018, is a consumption tax administered under the Service Tax Act 2018 and its subsidiary legislation. Service tax is imposed on prescribed services known as “taxable services”. A person who provides taxable services exceeding a specified threshold of taxable service value must register under the Service Tax Act […]
Expansion of the Scope of Service Tax (ST) Exemption for Maintenance Services
The government has agreed to extend the exemption from paying ST to maintenance services related to the following matters: This means that any maintenance and repair services on residential premises, such as roof repairs or any equipment and facilities that are part of residential premises, such as lifts, air conditioners, and water heating systems, are […]
Impact of E-Invoicing on Customs Declarations: Key Considerations for Local Businesses
In the past, some local businesses in Malaysia have been under-declaring the true value of imported goods to save on customs duties. However, when it comes to bookkeeping, they have been recording the transactions at their actual values, which are relatively higher, to take advantage of tax deductions. With the introduction of the e-invoicing era, […]
Free Zone in Malaysia
Introduction 1. Free zones are established to provide exemptions from customs duties, excise duties, and sales tax on goods brought into, taken out of, or produced within a free zone, aimed at promoting export-oriented manufacturing activities and trading activities such as trading, bulk breaking, grading, repacking, and relabeling. 2. Referring to Section 2 of the […]
Guidelines on Exemption From Registration under the Sales Tax Act 2018 dated 5 February2024 (in Bahasa Malaysia)
This guideline, published by the Royal Malaysian Customs Department on 5 February 2024, provides guidance on exemptions from registration under the Sales Tax Act 2018. It aims to assist industries in identifying manufacturing operations that are exempt from registration as provided under subsection 20(1) of the Sales Tax Act 2018. Most important content: 1. Subsection […]
MOF – Media Release – Scope of Tax Exemption for Logistics Services Sector is Expanded to Reduce the Impact of Cascading Tax Effect
During the closing speech of the Royal Address in the Dewan Rakyat on 11 March 2024, YB Senator Datuk Seri Amir Hamzah, the Second Finance Minister, announced that the Ministry of Finance (MOF) will enhance the scope of service tax exemptions for the logistics sector to reduce the impact of double taxation. As announced in […]
Customs (Prohibition of Exports) (Amendment) Order 2024
The Customs (Prohibition of Exports) (Amendment) Order 2024, which comes into effect on 1 May 2024, amends the Customs (Prohibition of Exports) Order 2023 about the export of certain goods from Malaysia. Key points from the amended order: 1. The Ministry of Investment, Trade and Industry (MITI) replaces the Ministry of International Trade and Industry […]
Customs Duties (Exemption) (Amendment) (No. 2) Order 2024
The Customs Duties (Exemption) (Amendment) (No. 2) Order 2024, which is deemed to have come into effect on 1 January 2024, amends the Customs Duties (Exemption) Order 2017 by inserting a new item 121 in Part I of the Schedule. This new item provides customs duty exemptions for certain manufacturers on the import or purchase […]
Bonded Warehouse in Malaysia
In Malaysia, a bonded warehouse is a designated space authorized by the Royal Malaysian Customs (RMC) under Section 65 of the Malaysian Customs Act 1967. These warehouses serve as secure storage facilities for dutiable goods until they are removed from the warehouse. Here are the key points about bonded warehouses: A) Definition: ✅ A bonded […]
Eligibility Criteria for Different Types of Bonded Warehouses
Bonded Warehouse (Gudang Berlesen, GB) Company is licensed under Section 65 of the Customs Act 1967. Applications for GB licenses must be submitted to the Zone Operations Director/State Customs Director where the GB premises are located using Form JKDM No.1 along with Annex A and supporting documents based on the Checklist in Annex A. The […]
