Amendment to Excise Duties, Customs Duties and Sales Tax Exemptions

Further to the amendments made in April 2020 to effect the relaxation of the conditions to purchase duty free goods from international airports in Malaysia, the following Amendment Orders have been gazetted:-

• Excise Duties (Exemption) (Amendment) Order 2021;
• Excise Duties (Exemption) (Amendment) (No.2) Order 2021;
• Customs Duties (Exemption) 2017 (Amendment) Order 2021; and 
• Sales Tax (Persons Exempted from Payment of Tax) (Amendment) (No.2) Order 2021.

These Orders come into operation on 1 July 2021.  Set out below are the salient points:-

• The goods exempted from Excise Duties, Customs Duties and Sales Tax exclude cigarette and tobacco products including electronic cigarettes (where applicable).
• The total value of goods to be exempted from Sales Tax is limited to RM500 for any mode of travelling other than air mode and RM1,000 through air mode, and the minimum time frame requirement for a visitor to visit Malaysia or for a Malaysia resident to be absent from Malaysia is 72 hours for any mode of travelling other than air mode and 48 hours through air mode (in line with the existing conditions under the Customs Duties exemption).
• The condition in relation to minimum time frame requirement for a visitor to visit Pangkor is reduced to 24 hours from 48 hours.

Please click on the above header link for a copy of the Amendment Order at the Federal Legislation portal.

Our highlights are intended to provide a general overview of the key proposed tax changes and should not be used or relied upon as a substitute for detailed advice or as a basis for formulating business decisions.

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.