Overview of Custom Duty & Tax Exemption in Malaysia

Let us assist you in navigating the process of applying for import duty and sales tax exemptions by completing the form here.

Malaysia offers various import duty and sales tax exemptions which particularly beneficial to export-oriented businesses to promote investment, offering significant cost savings and operational flexibility for businesses in manufacturing and selected services sectors.

Types of Exemption
  • Import Duty Exemption Applicable to raw materials, components, and machinery used directly in manufacturing activities. This exemption is governed under the Customs Duties (Exemption) Order 2017.
  • Sales Tax Exemption Granted for local purchases of raw materials, components, and packaging materials used in manufacturing. Applications are processed under the Sales Tax Act 2018.
Benefits of Engaging These Services
  • Cost Savings: Reduction in operational costs through exemptions on import duty and sales tax.
  • Regulatory Compliance: Expert guidance ensures adherence to customs regulations, minimizing the risk of penalties.
  • Operational Efficiency: Streamlined processes for importing machinery, equipment, and raw materials
FAQs

Most businesses in Malaysia require at least a business premise license and signboard license issued by the local authority. n addition, regulated industries such as manufacturing, food & beverage, education, healthcare, finance, logistics, import/export, and telecommunications require specific licenses from relevant ministries or agencies such as MITI, MOH, MOE, or BNM

The required documents may vary by license type and issuing authority, but commonly include:

• Copy of Company Registration Certificate
• Director’s IC/Passport copies
• Business premise address details (rental agreement or land title)
• Site/floor plan or layout
• Photographs of premises and signboard specification
• Relevant approvals from agencies (e.g., BOMBA, DOE, DOSH)
• Application forms prescribed by the licensing authority

Operating without a valid license is an offense under Malaysian law

  • Speak to our expert

Nur Dalilah Da Halib

Support Services Officer