Customs Duties Order 2022

Updated Sales Tax and Excise Duties Orders 2022

As anticipated, in line with the implementation of the HS 2022 Nomenclature, the Ministry of Finance (“MOF”) has issued the following updated Orders, all with an effective date of 1 June 2022:

Updated Orders

Superseded Orders

Sales Tax (Rates of Tax) Order 2022

Sales Tax (Rates of Tax) Order 2018

Sales Tax (Goods Exempted from Tax) Order 2022

Sales Tax (Goods Exempted from Tax) Order 2018

Excise Duties (Motor Vehicles) (Payment) Order 2022

Excise Duties (Motor Vehicles) (Payment) Order 2017

Excise Duties (Labuan) Order 2022

Excise Duties (Labuan) Order 2020

Excise Duties (Langkawi) Order 2022

Excise Duties (Langkawi) Order 2020

Excise Duties (Pangkor) Order 2022

Excise Duties (Pangkor) Order 2019

Excise Duties (Tioman) Order 2022

Excise Duties (Tioman) Order 2004

 

Customs Amendment Orders 2022

Similarly, the MOF also issued the following Amendment Orders, all with an effective date of 1 June 2022:

  • Customs (Prohibition of Removal) (Amendment) Order 2022
  • Customs Duties (Labuan) (Amendment) Order 2022
  • Customs Duties (Langkawi) (Amendment) Order 2022
  • Customs Duties (Pangkor) (Amendment) Order 2022
  • Customs Duties (Tioman) (Amendment) Order 2022

Customs Duties Exemption Order 2022

The MOF introduced an additional exemption in relation to customs duties as follows:

  • Customs Duties (Exemption) 2017 (Amendment) (No. 3) Order 2022, effective 1 June 2022

Item 116 - any person who imported or purchased from a licensed warehouse or licensed manufacturing warehouse under Sections 65 or 65A of the Act, lithium iron of a kind used for laptops including notebooks and subnotebooks or aircraft.

Corrigendum

Excise Duties Order 2022 Corrigendum [P.U. (A) 198] has been gazetted to correct the following rate of duty error in the Excise Duties Order 2022 [P.U. (A) 163] published on 23 May 2022:

Tariff Code

Published on 23/5/2022

Corrected

3824.99.99 10

RM0.40 per litre

RM0.40 per mililitre

As many Orders have been issued recently, taxpayers need to ensure that the updated and correct Orders are used in determining the indirect tax treatment. We would encourage businesses to refresh their policies and written documentation with the latest legislative references.

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

FAQ Relating to Customs Duties Order 2022

Separately, the Royal Malaysian Customs Department (“RMCD”) has issued a FAQ relating to Customs Duties Order 2022.

Please click on the above header link for RMCD’s announcement on the FAQ.

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.

For customized guidance, please do not hesitate to reach out to your trusted KPMG adviser(s),

Petaling Jaya Office

Soh Lian Seng
Executive Director -
Head of Tax and Head of Tax Dispute Resolution
lsoh@kpmg.com.my
+ 603 7721 7019

Bob Kee
Executive Director -
Head of Transfer Pricing
bkee@kpmg.com.my
+ 603 7721 7029

Tai Lai Kok
Executive Director -
Head of Corporate Tax
ltai1@kpmg.com.my
+ 603 7721 7020

Long Yen Ping
Executive Director -
Head of Global Mobility Services
yenpinglong@kpmg.com.my
+ 603 7721 7018

Ng Sue Lynn
Executive Director -
Head of Indirect Tax
suelynnng@kpmg.com.my
+ 603 7721 7271

Outstation Offices

Penang Office

Evelyn Lee
Executive Director -
Penang Tax
evewflee@kpmg.com.my
+604 238 2288 (ext. 312)

Ipoh Office

Crystal Chuah Yoke Chin
Tax Manager -
Ipoh Tax
ycchuah@kpmg.com.my
+605 253 1188 (ext. 320)

Kuching & Miri Office

Regina Lau
Executive Director -
Kuching & Miri Tax
reglau@kpmg.com.my
+6082 268 308 (ext. 2188)

Kota Kinabalu Office

Titus Tseu
Executive Director -
Kota Kinabalu Tax
titustseu@kpmg.com.my
+6088 363 020 (ext. 2822)

Johor Bahru Office

Ng Fie Lih
Executive Director -
Johor Bahru Tax
flng@kpmg.com.my
+607 266 2213 (ext. 2514)