Malaysia Customs Agency Issues Guide on Sales Tax Deductions for Registered Manufacturers

The Malaysian Customs Department Nov. 21 issued a guide on the sales tax deduction regime for registered manufacturers, effective Jan. 1. The guidance provides: 1) relief to registered manufacturers who purchase manufacturing inputs from a supplier instead of a manufacturer; 2) a 2 percent deduction on goods taxed at the rate of 5 percent, and a 4 percent deduction on goods taxed at the rate of 10 percent; 3) the conditions and application procedures for the sales tax deduction; and 4) FAQs to determine when manufacturers can claim the deduction. [Malaysia, Royal Malaysian Customs Department, 11/21/19]

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