Malaysia Expands Sales Tax Exemption Guide for Eligible Machinery and Equipment Effective July 2025

• The Royal Malaysian Customs Department amended the sales tax exemption guide, expanding eligible machinery, equipment, and spare parts under the A55 exemption effective 1 July 2025.
• The A55 exemption applies to MIDA-endorsed companies for items used directly in manufacturing, provided they are listed in the updated appendix 1.
• Amendments include additions and exclusions of specific items and tariff codes in chapters 40, 74, 75, 79, 84, and 85.
• Companies must verify if their items are now included in the amended list and ensure all conditions are met to avoid penalties or loss of exemption.

Source: taxathand.com

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.

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