RMCD updates sales tax exemptions on motorcycles, soya beans, and machinery.
The Royal Malaysian Customs Department (RMCD) has issued updated guidance on sales tax exemptions granted by the Minister of Finance.
Under Sales Tax Policy 1/2025, motorcycles—including mopeds and cycles with auxiliary motors—equipped with internal combustion engines between 50 cc and 250 cc, classified under tariff codes 8711.20.96 00 and 8711.20.99 00, imported or locally manufactured by registered manufacturers, are exempted from sales tax effective from 27 September 2025.
Sales Tax Policy 2/2025 exempts the importation of soya beans, whether broken or whole, under tariff codes 1201.10.00 00 and 1201.90.00 00, effective from 1 July 2025. The exemption applies retrospectively, allowing eligible taxpayers to apply for refunds under Section 39 of the Sales Tax Act 2018 using the JKDM No. 2 Form by 30 November 2025 at the relevant state RMCD office.
Additionally, the RMCD issued a revised Guide on Sales Tax Exemption under Items 33A, 33B, 55, 63, 64, and 65 of Schedule A, Sales Tax (Persons Exempted from Payment of Tax) Order 2018 on 26 September 2025. The guide updates the list of machinery, equipment, and spare parts eligible for exemption and removes a footnote that previously allowed approval if RMCD verification confirmed direct use in manufacturing finished goods.
