MIDA Tax Exemption

Date :
28 - Sep - 2021 To 28 - Sep - 2021
Time : 09:00 am - 10:00 am
Mode of programme : Virtual Programme
Platform: Zoom

OBJECTIVES

The Royal Malaysian Customs Department (RMCD) provides various tax incentives to the business community 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, manufacturing aids, machineries, equipment & 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.

 

 

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.
  • Claiming of tax exemptions under Customs Duties (Exemption) Order 2017 (CDEO 2017) and Sales Tax (Persons Exempted from Payment of Tax) Order 2018
  • Treatment of sales tax on sales to  PCA / LMW / FIZ / DA / Overseas under Sales Tax Act 2018;
  • 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.   

 

 

METHODOLOGY

Remote online training - Power Points Presentation, Discussions and Case Studies.

 

 

PRE-REQUISITE

  • Good Internet / wifi connectivity
  • PC/ Laptop with good audio/visual
  • Virtual platform - ZOOM
MODULE CONTENT
MODULE 1 OVERVIEW OF TAX EXEMPTIONS UNDER CUSTOMS LEGISLATIONS
MODULE 2 INTRODUCTION TO  MIDA EXEMPTIONS AND SECTORS ELIGIBLE
MODULE 3

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)
MODULE 4

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
MODULE 5

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
MODULE 6

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
MODULE 7 APPLICATION PROCEDURES FOR TAX EXEMPTIONS (Form  SPM / SPM1)
MODULE 8 CONDITIONS IMPOSED BY  MIDA/ RMCD ON TAX EXEMPTIONS
MODULE 9

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.
MODULE 10

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
MODULE 11 COMMON MISTAKES / NON-COMPLIANCE BY EXEMPTION HOLDERS
MODULE 12

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
MODULE 13

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
MODULE 14

BRIEF OUTLINE SALES TAX CONCEPT

  • Single Stage Taxation
  • Concept of manufacture
  • Facilities / Incentives under Sales Tax Legislations
  • Treatment of Special Areas & Designated Areas
MODULE 15

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)
MODULE 16 SALES TAX EXEMPTIONS ON SUBCONTRACT WORKS & RELATED PROCEDURES
MODULE 17

OFFENCES AND PENALTIES

    • Section 15, Customs Act 1967
    • Section 138,Customs Act 1967
    • Section 86 (1), Sales Tax Act 2018
MODULE 18

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
MODULE 19

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

P

P. Nadaraja

P. 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 indepth knowledge of various customs legislations including Customs Act, Sales Tax Act, Service Tax Act, Excise Act and other subsidiary legislations. He has vast experience in Customs matters and has been a guest lecturer at the Royal Malaysia 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 a 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 and Administrators and an Associate Member of Chartered Tax Institute of Malaysia (ACTIM) and is currently involved in customs litigation and rendering of consultancy services on Customs matters.

Price

MYR 660.00

Subjected to 6% SST

42

1 Day/s

7 CPD Points

Certificate of Attendance Will be Provided

HRDcorp Claimable