Indirect Tax & Stamp Duty

Indirect Tax

Sales Tax

Sales tax is imposed on certain imported and locally manufactured goods under the Sales Tax Act 1972. The tax rate ranges from 5 - 10% for majority of the goods except for food preparations other than alcoholic and non-alcoholic compound preparations (other than those of heading No. 33.02) used for making beverages which falls under the tariff code 2106.90.490 with a tax rate of 20%. 

Sales tax is also imposed on petroleum and petroleum products according to specific rates: 5% - 10%

Service Tax

Service tax is imposed on taxable services provided by taxable persons. Services include services provided by professionals (such as lawyers, engineers, architects, surveyors, consultants), valuers, real estate agents, management service providers, motor vehicle service & repair centre, security & guard services firms ,parking space services operators, recreational clubs, courier service firms, advertising firms, private hospitals, insurance companies, telecommunication companies, hotels and restaurants.: 6%

Exemption of Service Tax

-wef 1.1.2012, all taxable services provided in Free Zones or Principal Customs Area and supplied to Free Zones or Principal Customs Area or in relation to matter in Langkawi, Tioman, Labuan and Joint Development Areas shall be exempted from service tax.

Excise Duty

Excise duty is levied on imported and locally manufactured goods under the Excise Act 1976. The goods are listed under the Excise Duties Order 2004. Goods include:

Goods                                         Duty Rate

Motorcars                                   75% - 105%

4Wheel drives                             60% - 105%

Motor cycle                                 20% - 30%

Intoxicating liquor         RM0.10 + 15% per litre - RM42.50 per 100% vol per litre + 15% per litre

Cigarettes                                   RM0.18 per stick + 20%

Stamp Duty

Stamp duty is chargeable on certain instruments and documents.

Conveyance, assignment or transfer (a) Properties     Value  RM     On the first     100,000           On the next    400,000             In excess of   500,000 Stamp Duty RM 1 per RM 100  or part thereof RM 2 per RM 100 or part thereof RM 3 per RM 100  or part thereof (b) Stock, shares or marketable securities    RM 3 per RM1,000 or part thereof Share warrant or stock certificate    RM1 for every  RM100 or part  thereof Memorandum of a company Article of Association            RM 100 RM 100 Lease or agreement for lease of any immovable property No stamp duty for the first RM 2,400 . For every RM 250 or part thereof in  excess of RM 2,400                      Tenor 1 year   2 year   RM 1    RM 2     Loan & Services Agreement All loan & services agreement ( except for educations loan) Education loan agreements Ad valorem RM5  for every RM1,000 or part thereof Fixed at RM 10
Exemption of stamp duty -Loan in    relation to    Professional Service Fund  which is  not  more than RM 50, 000 from Bank Simpanan  Nasional executed on and after 1.1.2012. -Loan  agreement  executed on and  after 1.1.2012 for loan sum  which is  not more than    RM 50,000 and is  approved  under National  Small And  Medium Enterprise Development Council. -Loan agreement and  S&P agreement for purchase of residential property cost not more than RM 300,000 from PRIMA Corporation Malaysia which is executed from 1.1.2012 -31.12.2016.