Tax Whiz | Indirect Tax Updates (VA Programme, Service Tax Policy, Tourism Tax Policy and Excise Duty on e-Cigarettes & Tax Whiz | Indirect Tax Updates (VA Programme, Service Tax Policy, Tourism Tax Policy and Excise Duty on e-Cigarettes & Tax Whiz | Indirect Tax Updates (VA Programme, Service Tax Policy, Tourism Tax Policy and Excise Duty on e-Cigarettes &

The Royal Malaysian Customs Department (“RMCD”) has officially announced the introduction of the VA Programme effective 1 January 2022 until 30 September 2022. The VA Programme will be in 2 phases with up to 100% penalty/ surcharge remission and up to 30% tax/ duty/ levy remission. It is noteworthy to mention that the programme includes amnesty, in addition to voluntary disclosure that was announced during the 2022 Budget announcement.

Please click on the above link for the RMCD announcement, Guideline and FAQ (currently available in Malay language only) at the RMCD’s official website. KPMG’s summary of the salient aspects of the VA Programme as well as key snapshots are also attached for your reference.

The MyVA Portal has also been launched, please click on the above link to access the portal.

Following the 2022 Budget announcement on the proposed Service Tax exemption on brokerage services related to trading of listed shares, the RMCD has issued the Service Tax Policy 3/2021 (as at 31 December 2021). It is important to note that the Service Tax exemption effective 1 January 2022 only applies to brokerage services related to trading of listed shares in Bursa Malaysia and not other types of brokerage services (e.g. other types of securities and derivatives).

Please click on the above header link for a copy of the Service Tax Policy 3/2021 (available in Malay language only).

Following the 2022 Budget announcement on the proposed extension of the Tourism Tax exemption for another year, the RMCD has uploaded the Tourism Tax Policy No. 2/2021 (as at 27 December 2021) on the exemption to foreign tourist staying in registered premises until 31 December 2022.

Please click on the above header link for a copy of the Tourism Tax Policy No. 2/2021.

Following the 2022 Budget announcement on the:

(a)     proposed expansion of the Excise Duty to nicotine contained liquid or gel used for e-cigarettes and vape; and

(b)    proposed increase in Excise Duty rate from RM0.40 per ml to RM1.20 per ml for non-nicotine contained liquid or gel used for e-cigarettes and vape

effective 1 January 2022, the RMCD has officially announced the postponement of the implementation to a date to be informed.

Please click on the above link for the RMCD announcement at the RMCD’s official website.

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.

Should you have any questions or require further clarification, please do not hesitate to email or contact any of our Executive Directors, Directors, Associate Directors or Managers whom you are accustomed to dealing with or who are responsible for the tax affairs of your organization.