Sales Tax Exemption on Raw Materials/Components/Machinery/Equipment-MIDA

Sales Tax Exemption on Raw Materials/Components/Machinery/Equipment-MIDA

Effective 1 April 2019, eligible companies in the agriculture, selected services and selected manufacturing sectors located in Principal Customs Area can apply for sales tax exemption on raw materials / components / machinery / equipment under Section 35(3) Sales Tax Act 2018 as follows:-

Sales tax exemption on machinery / equipment for agriculture sector through PC1

Sales tax exemption on equipment / machinery for selected services sector through PCServices:-

i.Research and Development (R&D)

ii.Private Institutes of Higher Education

iii.Private Institutes of Higher Education (Sciences, Technical or Vocational)

iv.Tourism Projects (without accommodation)

Sales tax exemption on raw materials / components for selected industries in the manufacturing sector with nil sales tax finished good through PC2:-

i.Aerospace / aircraft industry

ii.Machinery & equipment industry

iii.Petroleum products used as raw materials for industries other than oil refinery

iv.Motorcycle assembly industry

Company with existing approved import duty exemption in which the exemption period is still validmay manually submit application to Tariff Section, MIDA for sales tax exemption. Submission should include the following documents:

-Company’s cover letter

-Copy of import duty exemption approval.

Meanwhile, for new / extension / additional quantity application, company may apply for import duty and sales tax exemption online via https://jpc.online.mida.gov.my/midawebpki/

Application should be submitted to MIDA starting 1 April 2019.

For further information and clarification, please contact;

Tariff Section

Malaysian Investment Development Authority (MIDA)

Level 16, MIDA Sentral

No. 5, Jalan Stesen Sentral 5

Kuala Lumpur Sentral

50470 Kuala Lumpur

Tel: 03 2267 6791

Email: investmalaysia@mida.gov.my