The rate of excise duty varies from a compound rate of MYR 1.10 per litre and 15% of the value of certain spirit drinks to 105% of the value of motor vehicles (depending on engine capacity). If you ship an international package from the United States, your shipment may be subject to customs duties and import taxes. Every country is different, and to ship to Malaysia, here`s what you need to keep in mind. Sales tax is a single-step tax levied on importation at the port of entry (seaport, air port, immigration customs checkpoint). Malaysia imposes stamp duty payable by the purchaser/transferee on taxable instruments. Here are a few examples: The KPMG name and logo are trademarks used under license by independent member firms of KPMG`s global organization. KPMG International Limited is an English private limited company and does not provide services to its clients. No member firm is authorized to bind KPMG International or any other member firm to any third party, nor does KPMG International have the authority to bind or bind any member firm. The information contained herein is of a general nature and is not intended to address the circumstances of any particular person or entity. While we strive to provide accurate and timely information, there can be no assurance that such information is accurate at the time it is received or will continue to be accurate in the future.

No one should respond to such information without adequate professional advice after a thorough review of the situation. For more information, please contact KPMG`s Federal Tax Legislative and Regulatory Services group at +1 202 533 4366, 1801 K Street NW, Washington, DC 20006. Employers in the manufacturing and service sectors that employ more than a certain number of employees must contribute to the Human Resources Development Fund (HRDF). The levy amounts to 1% of the monthly salary of employees. Import duties are levied on goods that are subject to import duties and are imported into the country. Import duties are generally levied on a value basis, but may also be levied on a specific basis. Ad valorem tariffs range from 2% to 60%. Raw materials, machinery, essential foodstuffs and pharmaceuticals are generally admitted duty-free or subject to customs duties at lower rates. For the importation of goods into Malaysia, the SST means that sales and services tax, as well as additional Malaysian duties, are levied on goods imported into Malaysia. The rate of Malaysia`s customs excise duty on imports of imported goods is set out for each category of goods in column (4) of the First Schedule to the Customs Duties Ordinance 1996. Goods imported at zero rate and exempt from import excise duty. More than 5,500 imported goods are subject to zero SST and exempt from import excise duty.

Excise duties are levied on a selected range of products manufactured and imported into Malaysia. Excise goods include beer/stout, cider and perry, rice wine, mead, undenatured ethyl alcohol, brandy, whisky, rum and tafia, gin, tobacco cigarettes, motor vehicles, motorcycles, playing cards and mahjong tiles. 0% 5% to 10% SST is levied and forfeited on all “taxable and non-taxable goods” imported into Malaysia from a physical or commercial entity at the port of entry (seaport, airport, customs immigration checkpoint). In some cases, imported goods have a zero OSH rate and are exempt from import excise duty. The importation of zero-rated SST goods may continue to be subject to excise duty on importation. The rate of Malaysia`s customs excise duty on imports of each category of imported goods is set out for each category of goods in column (4) of the First Schedule to the Customs Duties Ordinance 1996. The importation of zero-rated SST goods may continue to be subject to excise duty on importation. Goods imported into the duty-free islands of Langkawi, Labuan and Tioman in Malaysia are exempt (excluding taxes).

Payment of duties or taxes is made at the customs office of entry (point of entry) or at the time of export before the goods are cleared through customs. With the exception of the 0% 5% or 10% tax on taxable goods imported into Malaysia at the point of importation. Imported goods are also subject to Malaysian excise duty (import duty), which ranges from 0% to 300% Sales tax is a single-tier tax levied on taxable goods produced locally by a registered manufacturer and taxable goods imported by an individual. Sales tax is generally an ad valorem tax. At present, specific VAT rates are levied only on certain grades of petroleum (usually refined petroleum). Value rates are 5% or 10%, depending on the class of goods. * The contribution rate will be reduced to 9% for a period of 12 months starting January 1, 2021. Importing goods with a zero tax rate of 0% is exempt from payment of 5% or 10% SST, but may still be subject to Malaysian customs duties (import duties) unless the goods are both SST and zero excise duty. View sales tax-exempt goods (downloadable PDF file) or contact your nearest carrier for more information and the complete list of goods Zero SST The services tax is an excise tax levied and levied on taxable services supplied in Malaysia by a person registered in the course of carrying on his business.