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Category FAQs Search : Tax Division (TAX)

Question: (Import/Export Duty Exemption) Can a company apply for import duty and sales tax exemption on machinery/equipment not used directly in the production activities of the company?

Answer: Duty/tax exemption is given only for raw materials/components and machinery/equipment used directly in manufacturing activities of the company. In addition, the duty/tax exemption on the cleanroom equipment is also considered on the basis that although the device is not used directly in manufacturing, but it is necessary to guarantee the manufacturing area is free from dust and electrical emissions interference. The company can communicate directly with the Customs Department for a list of cleanroom equipment exempted from import duty/sales tax.

(Source: Official Portal of Ministry of Finance, 05 Feb 2025)

Source Link: https://www.mof.gov.my/portal/pdf/bahagian/tax/faq-en.pdf