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2020 Budget – Indirect Tax

On 11 October 2019, the honorable Minister of Finance, YB Tuan Lim Guan Eng tabled the much anticipated 2020 Budget. 

Despite the widespread speculation on the reintroduction of Goods and Services Tax (“GST”) , it was clarified that the Government has no intention to bring back the tax.

Set out below are some of the notable proposals announced in the 2020 Budget in relation to Indirect Tax:-

·  Introduction of Approved Major Exporter Scheme for export-oriented companies in Malaysia.

·  Group relief for Service Tax exemption to be applicable, despite provision of same taxable services to third parties (subject to 5% threshold).

·  Training and coaching services for disabled persons be exempted from Service Tax.

·  50% Excise Duty exemption on tourism vehicles.

·  Introduction of Customs Duties deferred payment facility.

·  A reduction of 0.5% and 1.5% in the Export Duty rate on Crude Palm Oil. 

·  Entertainments Duty exemption be given on admission tickets for stage performances held at any venue in the Federal Territory of Kuala Lumpur, Labuan and Putrajaya.


Please click on the above header link for more details on the proposed amendments. 

The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation.

Contact KPMG

Should you have any questions or require further clarification, please do not hesitate to contact any of our Executive Directors, Directors, Associate Directors or Managers whom you are accustomed to dealing with or who are responsible for the tax affairs of your organisation at the following telephone numbers for respective offices:

Petaling Jaya Office

Tai Lai Kok
Executive Director –
Head of Tax and Head of Corporate Tax
+ 603 7721 7020

Long Yen Ping
Executive Director –
Head of Global Mobility Services
+ 603 7721 7018

Bob Kee
Executive Director –
Head of Transfer Pricing
+ 603 7721 7029

Ng Sue Lynn
Executive Director –
Head of Indirect Tax
+ 603 7721 7271

Soh Lian Seng
Executive Director –
Head of Tax Risk Management
+ 603 7721 7019

Nicholas Crist
Executive Director –
Corporate Tax
+ 603 7721 7022

Dato’ Leanne Koh
Executive Director – 
Corporate Tax
+ 603 7721 7026

Neoh Beng Guan
Executive Director – 
Corporate Tax
+ 603 7721 7025

Ong Guan Heng
Executive Director – 
Corporate Tax
+ 603 7721 7027

Chang Mei Seen
Executive Director – 
Transfer Pricing
+ 603 7721 7028

Ivan Goh
Executive Director – 
Transfer Pricing
+ 603 7721 7012




Evelyn Lee 
Executive Director –
Penang Tax
+604 238 2288 (ext. 312)

Regina Lau
Executive Director –
Kuching & Miri Tax
+6082 268 308 (ext. 2188)

Titus Tseu
Executive Director –
Kota Kinabalu Tax
+6088 363 020 (ext. 2822)

Ng Fie Lih
Executive Director –
Johor Bahru Tax
+607 266 2213 (ext. 2514)

Crystal Chuah Yoke Chin
Tax Manager –
Ipoh Tax
+605 253 1188 (ext. 320)