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MIDA TAX EXEMPTIONS UNDER SECTION 14(2) CUSTOMS ACT 1967 & RELATED SST RULES

    HRD Corp Programme Number : 1000149398

INTRODUCTION

The Royal Malaysian Customs Department (RMCD) provides various tax incentives to the business communities to lower their cost of doing business in Malaysia in order to be competitive globally. The manufacturing sector in particular is granted tax exemptions under the Customs Act 1967 and Sales Tax Act 2018 on imported and locally purchased raw materials / components, packing / packaging materials, machineries, equipments & spare parts used in the manufacturing process.

It is surprising that organizations which are entitled to claim the tax exemptions are not doing so. This course caters primarily for manufacturers registered under the Sales Tax Act 2018 and non-registered manufacturers located in Special Areas (FIZ and LMW). Manufacturers will be exposed to the facilities and incentives available to them, application procedures, documentation and the conditions required to be satisfied.

Download Brochure and Registration Form from HERE

Training Dates :
25th June 2024 (Hotel Armada Petaling Jaya, Selangor, Malaysia)
5th September 2024 (Hotel Armada Petaling Jaya, Selangor, Malaysia)
20th December 2024 (Dorsett Grand Subang, Subang Jaya, Selangor, Malaysia)

LEARNING OUTCOMES

By the end of the “MIDA TAX EXEMPTIONS UNDER SECTION 14(2) CUSTOMS ACT 1967 AND RELATED SST RULES” training, participants will be able to:

  • Understand the guidelines, regulations and procedures related to duty / tax exemption on raw materials / components and machinery / equipment
  • Know the self-declaration mechanism applicable to sales tax exemption on purchase of machinery, equipments and spare parts used in manufacturing
  • Aware of the 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
  • Claim for tax exemptions under Customs Duties (Exemption) Order 2017 (CDEO 2017) and Sales Tax (Persons Exempted from Payment of Tax) Order 2018
  • know the treatment of sales tax on sales to PCA / LMW / FIZ / DA / Overseas under Sales Tax Act 2018
  • Understand the application for sales tax exemption under Schedule A, B & C of the Sales Tax (Persons Exempted From Payment of Tax) Order 2018 (STEO 2018)

WHO SHOULD ATTEND

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

METHODOLODY

This “MIDA TAX EXEMPTIONS UNDER SECTION 14(2) CUSTOMS ACT 1967 AND RELATED SST RULES” training’s methodology is a combination of expert input, group discussion, slides presentation and case study.

COURSE CONTENT

  1. OVERVIEW OF TAX EXEMPTIONS UNDER CUSTOMS LEGISLATIONS
  1. INTRODUCTION TO  MIDA EXEMPTIONS AND SECTORS ELIGIBLE
  1. ORGANIZATIONS QUALIFIED FOR TAX EXEMPTIONS
  • Manufacturers registered under the Sales Tax Act 2018
  • Non registered manufacturers (LMW, FIZ and manufacturers of non sales taxable goods)
  1. GUIDELINES ON TAX EXEMPTIONS FOR MANUFACTURING SECTOR:
  • Duty/Tax Exemption on Raw Materials and Components
  • Duty/Tax Exemption on Machinery/Equipment
  • Guidelines and Criteria for Tax Exemptions
  1. CHANGES IN TAX EXEMPTION POLICY
  • Drawback facilities for export-oriented industries
  • Exemption for Iron & Steel Industry
  • Tax Exemption for non-registered manufacturers under Schedule B, Sales Tax (Persons Exempted from Tax) Order 2018
  1. TYPES OF TAX EXEMPTIONS:
  • Import duty exemption on raw materials / components granted by Ministry of Finance/ (MIDA)
  • Import duty exemption on machinery / equipment approved by RMCD based on Letter of Confirmation from MIDA.
  • Drawback Facility for export orientated industry.
  • Import duty exemption on importation of raw materials listed under Item 105 & 106, CDEO 2017 for manufacturers licensed under Industrial Coordination Act 1975
  • Import Duty Exemption under Item 99 CDEO 2017 for Iron & Steel Products.
  • Category of manufacturers qualified under Schedule B, Sales Tax (Persons Exempted from Payment of Tax) Order 2018
  1. APPLICATION PROCEDURES FOR TAX EXEMPTIONS (Form SPM / SPM1) 
  1. CONDITIONS IMPOSED BY MIDA/ RMCD ON TAX EXEMPTIONS
  1. IMPLEMENTATION, ENFORCEMENT AND SUPERVISION BY RMCD ON EXEMPTION HOLDERS:
  • Visit & surprise check by senior officer of customs
  • Auditing of records & documents
  • Control over importation pending MIDA exemption / Bank Guarantee.
  • Compliance with MIDA conditions.
  • Procedures as to Disposal of Scrap / Destruction Certificate.
  1. RESPONSIBILITIES OF EXEMPTION HOLDERS
  • Submission of quarterly returns
  • Maintenance of Machinery & Equipment Inventory List
  • Maintenance of Records / Documents on Raw Material / Components and Finished Goods
  1. COMMON MISTAKES / NON-COMPLIANCE BY EXEMPTION HOLDERS
  1. TAX EXEMPTIONS UNDER CUSTOMS DUTIES EXEMPTION ORDER 2017 and SALES TAX (PERSONS EXEMPTED FROM PAYMENT OF TAX) ORDER 2018
  • Temporary Import / Export of Machineries / Equipment
  • Temporary Import / Export of Defective Goods
  • Compliance with Conditions
  1. TREATMENT OF MISCELLANEOUS ITEMS
  • Winding up / Receivership / Liquidation of Exemption Holders
  • Accounting for Losses by Floods, Fire and Theft
  • Accounting for Subcontract
  • Drawback Facility under Customs Act 1967 and Sales Tax Act 2018
  1. BRIEF OUTLINE SALES TAX CONCEPT
  • Single Stage Taxation
  • Concept of manufacture
  • Facilities / Incentives under Sales Tax Legislations
  • Treatment of Special Areas & Designated Areas
  1. APPLICATION FOR SALES TAX EXEMPTIONS
  • Schedule A, Sales Tax (Persons Exempted from Payment of Tax) Order 2018
  • Schedule B, Sales Tax (Persons Exempted from Payment of Tax) Order 2018
  • Schedule C, Sales Tax (Persons Exempted from Payment of Tax) Order 2018
  • Sales Tax Exemption For Traders & Manufacturers under Approved Major Exporter Scheme (AMES)
  1. SALES TAX EXEMPTIONS ON SUBCONTRACT WORKS & RELATED PROCEDURES
  1. OFFENCES AND PENALTIES
  • Section 15, Customs Act 1967
  • Section 138,Customs Act 1967
  • Section 86 (1), Sales Tax Act 2018
  1. REMISSION OF CUSTOMS DUTY AND SALES TAX
  • Remission of duty / tax by the Director General of Customs
  • Remission of duty / tax by the Minister of Finance
  • Related provisions under Customs Act and Sales Tax Act
  1. REVIEW AND APPEAL PROCEDURES
  • Appeal to Director General of Customs
  • Appeal to Minister of Finance
  • Appeal to Customs Appeal Tribunal
  • Prescribed Forms – JKDM 4 and SST 04

Download the programme outline in pdf from HERE

FACILITATOR

P.NADARAJA
LLB (Hons) Lond., CLP (Malaya), ACIS (UK), ACTIM

Click Here to download P.Nadaraja profile in PDF format

Nadaraja was formerly with the Royal Malaysia Customs (1981-1997) as a Senior Officer of Customs having served in various units and his key areas of focus includes customs administration, import and export procedures, classification, valuation, licensing and compliance matters. He posses an in depth knowledge of various customs legislation including Customs Act, Sales Tax Act, Service Tax Act, Excise Act and other subsidiary legislation. He has vast experience in Customs matters and has been a guest lecturer at the Royal Malaysian Customs Academy in Malacca on various occasions to deliver lectures on various aspects of Customs laws and procedures.

In 1997 he left the Customs Department on optional retirement for private practice as an Advocate and Solicitor.

He is now involved in legal practice and at the same time is actively involved in conducting seminars and workshops on customs matters. He has also conducted in house training for various companies including statutory bodies and has advised and consulted upon by companies on issues such as customs and sales tax valuation, classification, service tax matters, drawback, refunds, exemptions and others. He was officially appointed by the Customs Department to conduct Basic Customs Course for forwarding agents during the year 2005 – 2007.

He is also an Associate of the Malaysia Institute of Chartered Secretaries & Administrators and Chartered Tax Institute of Malaysia (ACTIM) and is currently involved in customs litigation in subordinate and High Courts and render consultancy & advisory services on Customs matters to various companies

Course Fees & Registration
FEE PAYABLE PER PARTICIPANT :

Normal Price                                          : RM1,198

Early Bird (15 days before event)       : RM1,068

Group Fee (>2 participants)                : RM938

Fee includes course materials, lunch, 2 tea breaks per day and Certificate of Attendance (upon completion of the training).

Download our Registration form Here and sent it to us by

WhatsApp : +60162634929

Email : sales@wanfahprosper.com

CANCELLATION / TRANSFER

Upon registering, participant(s) are considered successfully enrolled in the event.  Written cancellations / transfer notice received :

      • More than ten (10) working days before the event, a refund (less administrative charge of 15%) will be made.
      • Ten (10) working days or less before the event, no refund will be made.
      • For no show on the day of the event, full payment is required. If you cannot attend the event, you can nominate a substitute at any time without payment of an administration fee.
      • A full (100%) refund may be granted if the course is cancelled by Wanfah Prosper PLT (WFP). WFP reserves the right to postpone or cancel the event and / or change facilitator at any time should circumstances beyond its control arises. WFP also reserve the right to make alternative arrangements without prior notice should it be necessary to do so.

Payment

Please make cheque payable / direct credit to :WANFAH PROSPER PLT

Accounts Number : 3812930508

Bank : Public Islamic Bank Berhad

DATA PROTECTION

Personal Data is gathered in accordance with the Personal Data Protection Act 2010 (Act 709)