Tax Developments

The monthly tax developments aim to provide tax updates to your organization in a more timely manner.

We are pleased to highlight the notable tax updates and developments since the last update as below:

Indirect Tax

    1. Postponement of implementation of Sales Tax on low value goods ("LVG")

The Royal Malaysian Customs Department ("RMCD") has issued an announcement dated 22 November 2022 on the postponement of the implementation of Sales Tax on LVG to 1 April 2023 (initially proposed to be effective 1 January 2023).

Source for the announcement: RMCD’s official website – available in Malay language only.

    2. Amendment to Sales Tax Policy 1/2022

The RMCD has issued an updated Sales Tax Policy 1/2022 (dated 16 November 2022) in respect of Sales Tax exemption on pallets.

The update was made to paragraph 3 of the said Sales Tax Policy, which states that pallets that are used for the purpose of transporting goods, reusable "or" will be returned to the registered manufacturer shall not be categorised as packaging materials, hence do not qualify for Sales Tax exemption under Item 1 or Item 3, Schedule C of the Exemption Order. The word "or" is now replaced with "and". 

Please click here for a copy of our earlier Tax Whiz. 

Source for the announcement: RMCD’s official website – available in Malay language only.