Malaysia: Sales tax exemption expansion

Malaysia: Sales tax exemption expansion

The Sales Tax (Persons Exempted from Payment of Tax) (Amendment) (No.2) Order 2020 was published in the official gazette on 5 October 2020, and is effective 6 October 2020.

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The amended order expands the application of an exemption from sales tax to goods that are transported to “designated areas” or “special areas.”

Previously, the sales tax exemption applied to any approved person with respect to the purchase of goods domestically manufactured or goods manufactured by any licensed manufacturing warehouse or by any manufacturer in a free trade zone for export within a six-month period. The transportation of goods to designated areas and special areas was not considered to be an export for the purpose of the sales tax exemption.

Read an October 2020 report prepared by the KPMG member firm in Malaysia 

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