Based on the information gathered, Inland Revenue Board of Malaysia (IRBM) would like to alert the public to be more cautious of the modus operandi used by tax scammers as listed in their media statement by which could be accessed from the web link below:
The Royal Malaysian Customs Department (RMCD) has recently issued sales tax policy no 1/2022 on 5 April 2022 on the conditions to qualify for sales tax exemption on pallets.
The policy is currently only available in the Malay language version. The policy clarifies the following:
• Registered manufacturers or agents appointed by a registered manufacturer for import or purchase of pallets used as material packaging in manufacturing are eligible for exemption of sales tax under item 1 or Item 3, Schedule C, Sales Tax Order (Persons Exempted From Tax Payment) 2018.
• Pallets imported or purchased with sales tax exemption under item 1 or 3, Schedule C of the Sales Tax Order (Persons Exempted From Tax Payment) 2018 should be:
– used as a material packaging of finished goods exported
– sold and not returned to the registered manufacturer
– should not be the property of the buyer.
• Pallets used for the purpose of:
– transporting goods
– reusable or reinstated to the registered manufacturer are not categorised as packaging material and not eligible for sales tax exemption under item 1 or 3, Schedule C of the Sales Tax Order (Persons Exempted From Tax Payment) 2018. Sales tax should be paid when the pallets are imported or purchased.
• Pallets used for the purpose of transporting exported goods and then re-imported are eligible for sales tax exemption under item 39, Schedule A, Sales Tax Order (Person Who Exempted From Tax Payment) 2018 during the pallet re-imported.
