Malaysia will not be taxable in Malaysia. Applicable to all tax residents, non-residents, business and individual. World Scope Basis Applicable to tax residents of business organizations in banking, insurance, air transport and sea transport industries only. All income derived from all over the world will be taxable in Malaysia. Non tax residents in these four industries are excluded from the World Scope Basis.
TAX RATE Service tax rate The Service Tax rate is fixed at 6%. A specific rate of tax of RM25 is imposed upon the provision of credit card and charge card services. Service tax is charged on: • any provision of taxable services; • provided in Malaysia; • by a registered person • in carrying on his business Service tax is not chargeable for imported and exported services under the STA 2018 Sales tax rate The sales tax rate is subject to 5%, 10% or to a specific rate (for petroleum). Custom Duty Duties for some products are also based on quantity measurements, like weight or volume. Import duties are generally levied on an ad valorem basis but may also be imposed on a specific basis. The rates of import duties range from 2% to 60%. Raw materials, machinery, essential foodstuffs, and pharmaceutical products are generally non-dutiable or subject to duties at lower rates. Some electronic products like laptops, electric guitars are not subjected to duty and some products are free from sales. There is no threshold on sales and excise duties. Excise duties are imposed on a selected range of goods manufactured and imported into Malaysia. Goods that are subject to excise duty include beer/stout, cider and perry, rice wine, mead, un-denatured ethyl alcohol, brandy, whisky, rum and tafia, gin, cigarettes containing tobacco, motor vehicles, motorcycles, playing cards, and mahjong tiles. The rate of excise duties vary from a composite rate of MYR 0.1 per litre and 15% of the value for certain types of spirituous beverages, to as much as 105% of the value of motorcars (depending on engine capacity).
ADMINISTRATION OF INDIRECT TAX
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- Summer '19