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.


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 

© 2022 KPMG LLP, a Delaware limited liability partnership and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved.

For more detail about the structure of the KPMG global organization please visit

The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organization. KPMG International Limited is a private English company limited by guarantee and does not provide services to clients. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. 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. For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at: + 1 202 533 4366, 1801 K Street NW, Washington, DC 20006.

Connect with us