Sales tax 2.0 was implemented with effect from 1 September 2018 to replace the existing Goods and Services Tax (GST). It is a single-stage tax imposed on taxable goods manufactured locally by a registered manufacturer, and on taxable goods imported by any person. The sales tax rate is 5%, 10%, or a specific rate for petroleum-related products. Goods are taxable unless they are specified in the sales tax exemption orders.
Manufacturers in Malaysia need to understand the impact of sales tax. Unlike Service Tax, manufacturers need to incur sales tax upfront upon the importation of goods and sales of goods, resulting in cash flow implications. Thus it is very important to understand the tax incentive such as pioneer status, investment tax allowance, or reinvestment allowance, and whether they can apply to your business. In addition, to fully utilize the 81 exemptions which may apply to your business under Sales Tax Exemptions.
Special treatment is also given to transactions involving Designated Areas (Labuan, Langkawi, Pangkor and Tioman) and Special Areas (Free Zones, Licensed Warehouses, Licensed Manufacturing Warehouses and Join Development Area).
We can provide you with our comprehensive sales tax support which includes sales tax exemption advisory, shipment planning under special treatment, sales tax training and a sales tax review program
Equip with deep tax technical expertise, our tax specialists are here to support you, delivering top-notch tax consulting services in line with your highest expectations to drive your business forward.