Malaysia Customs Agency Issues Sales Tax Policy on Exemption for Manufacturing Machinery, Equipment, Spare Parts

The Malaysian Customs Department Oct. 10 issued Sales Tax Policy No. 4/2025, clarifying deadlines and procedures for claiming refunds under the sales tax exemption for imported or purchased machinery, equipment, and spare parts for manufacturing finished goods. The policy clarifies that: 1) manufacturers can submit the refund application for eligible imports or purchases made from July 1 to Sept. 26; 2) manufacturers must obtain a confirmation letter from the Malaysian Investment Development Authority (MIDA) and pay the sales tax, to qualify for the refund; 3) refund applications must be submitted by Nov. 30; and 4) additional information on refund claim ...