Malaysia Customs Import and Export Tax
Summary:This article provides an overview of Malaysia's customs import and export tax policies, including the levying of import duties on most goods, zero-tax policies on certain items, preferential tariff arrangements with various countries, and export duties on resource-based products.
Import Duties
Most imported goods are subject to import duties, which are levied as either ad valorem or specific duties. In recent years, Malaysia has eliminated import duties on various raw materials, machinery, and components. Malaysia enjoys preferential tariffs with ASEAN countries, with import duties on industrial products ranging from 0% to 5%. It has also established bilateral free trade agreements with Japan, under which import duties are reduced; and regional free trade agreements under the China-ASEAN Free Trade Area and the Korea-ASEAN Free Trade Area with China and South Korea, respectively. Under the Free Trade Agreement with Australia, Malaysia will eliminate more than 97% of tariffs on goods imported from Australia.
Export Duties
Malaysia imposes export duties on resource-based products such as crude oil, logs, sawn timber, and crude palm oil. The ad valorem rate of export duty ranges from 0% to 20%.
Sales and Services Tax
Sales tax and services tax are two distinct taxes. The tax threshold is RM500,000 (approximately RMB 800,000) in annual turnover, and RM1.5 million for food and beverage suppliers. The sales tax rate is divided into three categories: 0%, 5%, and 10%. The 0% rate mainly applies to agricultural products, necessities, books, medical supplies, and recycled products. The 5% rate mainly applies to processed foods and imported semi-finished products. The 10% rate mainly applies to industrial products and imported finished products. The services tax rate is 6%, applicable to all commercial services, tourism, transportation, finance, catering, and cross-border digital economy services provided within Malaysia.