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.

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October 2, 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

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