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Malaysia: Guidance on sales tax exemptions

Including sales tax exemptions for motorcycles, importation of soya beans

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September 29, 2025

The Royal Malaysian Customs Department (RMCD) issued the following guidance regarding sales tax exemptions granted by the Minister of Finance:

  • Sales Tax Policy 1/2025—Sales tax exemption on motorcycles
  • Sales Tax Policy 2/2025 – Sales tax exemption on the importation of soya beans

The RMCD also issued a revised Guide on Sales Tax Exemption under Item 33A, 33B, 55, 63, 64 & 65, Schedule A, Sales Tax (Persons Exempted from Payment of Tax) Order 2018 (dated September 26, 2025) mainly to update the list of machinery, equipment, and spare parts eligible for exemption.  The revised guide also removed a footnote in Appendix 1 which stated that approval for sales tax exemption may be granted if the RMCD officer can verify and is satisfied that such goods are directly used in the manufacturing of finished goods.

Read a September 2025 report prepared by the KPMG member firm in Malaysia

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