What Is The Import Tax In Malaysia


Located between the Andaman Seas and South China, Malaysia is recognised to be a strategic operating location and historic trading centre, with its borders in Singapore, Indonesia, and Brunei, through the land. Malaysia will liberalise export and import regulations.

The custom tariffs of Malaysia will be on a value-added basis, along with a simple average tariff of around 6.1 per cent for different industrial goods. Malaysia continues to import the taxes and duties for different tariff lines along with enhanced local production, which is higher than those from different countries. However, complicated rules specific to the goods continue to exist. As you read this article, you can seek information about import tax in Malaysia.

What Is The Import Tax In Malaysia

Export and import licensing

Every business needs a licence. However, it is essential to gain an understanding of the licensing schemes of Malaysia for the export and import of goods as it will ensure that the customs officials do not reject the traders.

For the export and import of goods with a licence, the traders should register with the Companies Commission of Malaysia. After the completion of the registration, the company should apply for an import licence from MITI, or the Ministry of International Trade and Industry. Malaysia employs the privatised single digital window known as Dagand Net for export and import regulations.

You can find the complete list of the goods that need a licence. But, the primary goods are inclusive of foodstuffs, dead and living animals, agricultural products, heavy equipment, iron-related items, plants, and vehicles.

Malaysia’s import taxes

Malaysia, along with five ASEAN Member States of Indonesia, Brunei Darussalam, Singapore, Philippines, Thailand, and Malaysia, is recognised to be a free trade area. The goods which are imported from different countries are subjected to the import duty rates regularly. The goods which are imported into Malaysia will be subjected to the SST, or Sales and Service Tax, of about 10 per cent. Such goods range from anything, including electronics, to food products.

But, there are a few goods which are taxed at the 5% reduced rate. However, other goods will be exempt from the sales tax completely. There are certain food products which are subjected to the additional Malaysian Customs Excise import duty of about 15 per cent on certain kinds of beverages.

Products that are exempted from Malaysia’s import tax

Products that are exempted from Malaysias import tax

A few of the goods which are exempted from the Malaysia import tax include Schedule B, Schedule A, and Schedule C. Schedule C is ideal for registered agents and manufacturers who want to get items free from sales tax as these goods are beneficial for the manufacture of the taxable goods. Schedule B is considered to be ideal for certain products, like pharmaceutical items, price-controlled products, exempt goods, and milk items.

Food products such as olive oil and sunflower oil, electronics such as smartphones and laptop computers, and personal hygiene products are also exempt from Malaysian customs duty taxes.

Malaysia is liberalising its customer regulations to improve the export and import options outside the country. Malaysia provides suitable opportunities for traders for exporting and import.