Malaysia: Guidance on sales tax exemption for raw materials, components, packing and packaging materials, manufacturing aids, and cleanroom equipment
Sales tax refund applications must be submitted by November 30, 2025.
The Royal Malaysian Customs Department (RMCD) issued Sales Tax Policy 3/2025 regarding the sales tax exemption for raw materials, components, packing and packaging materials, manufacturing aids, and cleanroom equipment, imported or purchased locally from a registered manufacturer (by a manufacturer) to manufacture goods that were exempted from sales tax before July 1, 2025 and became taxable on/after July 1, 2025.
Manufacturers that have applied for registration as a registered manufacturer no later than August 31, 2025, may apply for sales tax refunds for the above goods still under the manufacturer’s control and that were imported or purchased from a registered manufacturer from July 1, 2025 to August 31, 2025.
Applications must be submitted using JKDM No. 2 Form to Cawangan Perakaunan Hasil, Bahagian Perkhidmatan Teknik, Jabatan Kastam Diraja Malaysia (JKDM) at the respective states by November 30, 2025.
Read a September 2025 report prepared by the KPMG member firm in Malaysia