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Amendment to Sales Tax Exemption Order

On 5 October 2020, the Sales Tax (Persons Exempted from Payment of Tax) (Amendment) (No.2) Order 2020 was published in the Federal Government Gazette. 

The Amendment Order come into operation on 6 October 2020.

Prior to the amendment, subject to meeting conditions, Item 57 of Schedule A of the Sales Tax (Persons Exempted from Payment of Tax) Order 2018 (“the Exemption Order”) provides that any person approved by the Director General is exempted from payment of Sales Tax on the purchase of goods locally manufactured or manufactured by any licensed manufacturing warehouse (“LMW”) or by any manufacturer in the Free Industrial Zone (“FIZ”) for export within 6 months.  Transportation of goods to Designated Areas and Special Areas was not considered as export for the purpose of Sales Tax exemption under Item 57 of Schedule A. 

The above Amendment Order amended Item 57, Schedule A of the Exemption Order to extend the Sales Tax exemption to cover goods for transport to any Designated Areas or Special Areas, effective 6 October 2020. 

For more details, please click on the above header link for a copy of the Amendment Order at the e-Federal Gazette.

On 5 October 2020, the Sales Tax (Persons Exempted from Payment of Tax) (Amendment) (No.2) Order 2020 was published in the Federal Government Gazette. 

The Amendment Order come into operation on 6 October 2020.

Prior to the amendment, subject to meeting conditions, Item 57 of Schedule A of the Sales Tax (Persons Exempted from Payment of Tax) Order 2018 (“the Exemption Order”) provides that any person approved by the Director General is exempted from payment of Sales Tax on the purchase of goods locally manufactured or manufactured by any licensed manufacturing warehouse (“LMW”) or by any manufacturer in the Free Industrial Zone (“FIZ”) for export within 6 months.  Transportation of goods to Designated Areas and Special Areas was not considered as export for the purpose of Sales Tax exemption under Item 57 of Schedule A. 

The above Amendment Order amended Item 57, Schedule A of the Exemption Order to extend the Sales Tax exemption to cover goods for transport to any Designated Areas or Special Areas, effective 6 October 2020. 

For more details, please click on the above header link for a copy of the Amendment Order at the e-Federal Gazette.

Revised Guide on Management Services (as at 1 October 2020)

Meanwhile, the Royal Malaysian Customs Department (“RMCD”)  has issued a revised Guide on Management Services (as at 1 October 2020), which provide further clarifications on the Service Tax implications relating to provision of management services.

Please click on the above header link for a copy of the revised Guide at the MySST portal (available in Malay language only).

Should you have any questions or require further clarification, please do not hesitate to email or 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 organization.

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.

 

 

Ng Sue Lynn
Executive Director
Indirect Tax Practice

 

Dato’ Tan Sim Kiat
Advisor 
Indirect Tax Practice

 

Yap Choon Ling
Director
Indirect Tax Practice