MIDA Tax Exemptions under Section 14(2) Customs Act 1967

OBJECTIVES

As the principal agency responsible for the promotion of investments as well as the coordination of industrial development and selected services sectors in Malaysia, the Malaysian Investment Development Authority (MIDA)’s role is not only confined to attracting companies that intend to invest in the country, but also includes facilitating the implementation of investment projects.

One of the facilitations provided by the Government to further accelerate the growth of industry in Malaysia is the import duty and/or sales tax exemption under the provisions of Section 14(2) Customs Act 1967 and/or Section 35(3) Sales Tax Act 2018 to manufacturers and investors in the selected services sector.

Implementing a new project involves massive costs, including but not limited to: the purchasing of machinery, equipment, sample materials, prototypes, raw materials and components. To alleviate these heavy cost burdens at the starting point of a project, and in keeping with Malaysia’s business-conducive investment environment, companies engaging in manufacturing and selected services sectors can benefit from the following investment

BENEFITS

• Understanding of the guidelines, regulations and procedures related to duty / tax exemption on raw materials / components and machinery / equipment;
• Self-declaration mechanism applicable to sales tax exemption on purchase of machinery, equipments and spare parts used in manufacturing.
• Application of Approved Major Exporter Scheme (AMES) a recent introduction on the acquisition of raw materials, components, packing and packaging materials by non registered manufacturers.
• Treatment of sales tax on sales to  PCA / LMW / FIZ / DA / Overseas under Sales Tax Act 2018

WHO SHOULD ATTEND?

This course is suitable for manufacturers (registered and non registered), forwarding agents, logistics companies and accounting / finance manages.

METHODOLOGY

Power Points Presentation, Discussions and Case Studies.

KEY CONTENTS

1. OVERVIEW OF TAX EXEMPTIONS UNDER CUSTOMS LEGISLATIONS
2. INTRODUCTION TO  MIDA EXEMPTIONS AND SECTORS ELIGIBLE
3. ORGANIZATIONS QUALIFIED FOR TAX EXEMPTIONS
4. GUIDELINES ON TAX EXEMPTIONS FOR MANUFACTURING SECTOR
5. CHANGES IN TAX EXEMPTION POLICY
6. TYPES OF TAX EXEMPTIONS
7. APPLICATION PROCEDURES FOR TAX EXEMPTIONS (Form SPM / SPM1)
8. CONDITIONS IMPOSED BY MIDA/ RMCD ON TAX EXEMPTIONS
9. IMPLEMENTATION, ENFORCEMENT AND SUPERVISION BY RMCD ON EXEMPTION HOLDERS
10. RESPONSIBILITIES OF EXEMPTION HOLDERS
11. COMMON MISTAKES / NON-COMPLIANCE BY EXEMPTION HOLDERS
12. TAX EXEMPTIONS UNDER CUSTOMS DUTIES EXEMPTION ORDER 2017 and SALES TAX (PERSONS EXEMPTED FROM PAYMENT OF TAX) ORDER 2018
13. TREATMENT OF MISCELLANEOUS ITEMS
14. BRIEF OUTLINE SALES TAX CONCEPT
15. APPLICATION FOR SALES TAX EXEMPTIONS
16. SALES TAX EXEMPTIONS ON SUBCONTRACT WORKS & RELATED PROCEDURES
17. OFFENCES AND PENALTIES
18. REMISSION OF CUSTOMS DUTY AND SALES TAX
19. REVIEW AND APPEAL PROCEDURES

CERTIFICATE OF PARTICIPATION