BUSINESS › NEWS




MIDA: Self-declaration Process For Tax Exemption Improves Business Efficiency

KUALA LUMPUR, July 17 (Bernama) -- The self-declaration mechanism for tax exemption has improved efficiency, saved time and reduced the cost of doing business in Malaysia, said Malaysian Investment Development Authority (MIDA) chief executive officer Datuk Azman Mahmud.

He said the mechanism was well received by the companies as time taken to clear goods had been reduced without the need to obtain bank guarantee facilities.

Azman said 280 companies have enjoyed the tax exemption under the self-declaration process since its inception in May.

"This self-declaration mechanism is part of the business process reengineering effort by the government to simplify the mechanism in granting import duty and sales tax exemption for eligible sectors.

"Manufacturers in the Principal Custom Area (PCA), companies engaged in hotel business and haulage operators can claim the exemption through a self-declaration process," he told a media briefing here Thursday.

Effective May 2 this year, the exemption on import duty and/or sales tax on machinery, equipment, spare parts, consumables, prime movers and container trailers is claimable under the Customs Duties (Exemption) Order 2013 and/or Sales Tax (Exemption) Order 2013 through a self-declaration process.

Under the new mechanism, MIDA will only issue a letter to confirm the status of the company.

Companies are then required to submit a confirmation letter from MIDA along with the list of new machinery, equipment, spare parts, consumables, prime movers and container trailers to be imported or purchased to the Customs Department for permission to claim the exemption prior to clearance.

The permission to claim the exemption can be obtained from the Customs Department within two weeks, Azman said.

-- BERNAMA




We provide (subscription-based) 
news coverage in our
Newswire service.