Malaysia Customs Agency Explains Service Tax Exemption for Companies in Joint Development Area

The Malaysian Customs Department May 27 issued Service Tax Policy No. 1/2021, providing a service tax exemption for the Malaysia-Thailand joint authority (MTJA) and companies operating in the joint development area (JDA), effective May 1. The agency explained that: 1) taxable services provided within the JDA by any company in the Principal Customs Area (PCA) are tax-exempt; 2) any service taxes collected from customers between Sept. 1, 2018, and April 30, 2021, must be remitted to the customs department; 3) applications for the refund of service taxes paid before May 1, 2021, won’t be approved; and 4) service tax exemptions ...