064e (A1183).

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LAWS OF MALAYSIA
REPRINT

Act 64

SALES TAX ACT 1972
Incorporating all amendments up to 1 January 2006

PUBLISHED BY THE COMMISSIONER OF LAW REVISION , MALAYSIA UNDER THE AUTHORITY OF THE REVISION OF LAWS ACT 1968 IN COLLABORATION WITH MALAYAN LAW JOURNAL SDN BHD AND PERCETAKAN NASIONAL MALAYSIA BHD

2006

064e (A1183).fm Page 2 Friday, March 31, 2006 5:54 PM

2 SALES TAX ACT 1972 Date of Royal Assent … … … … … … 26 February 1971 28 February 1971

Date of publication in the Gazette… …

PREVIOUS REPRINTS First Reprint … Second Reprint … … … … … … … … 1993 1999

PREPARED FOR PUBLICATION BY MALAYAN LAW JOURNAL SDN BHD AND PRINTED BY PERCETAKAN NASIONAL MALAYSIA BERHAD KUALA LUMPUR BRANCH 2006

064e (A1183).fm Page 3 Friday, March 31, 2006 5:54 PM

3 LAWS OF MALAYSIA Act 64 SALES TAX ACT 1972
ARRANGEMENT OF SECTIONS

PART I PRELIMINARY
Section

1. 2. 2A. 2B.

Short title and application Interpretation Free zone Licensed warehouse and licensed manufacturing warehouse deemed outside Malaysia PART II ADMINISTRATION

3. 4. 5.

Functions and powers of Director General and other officers Officers to be public servants Authority cards, etc., to be produced PART III CHARGE TO TAX

6. 7.

Charge to tax Determination of sale value PART IV EXEMPTIONS AND REFUND

8. 9. 10. 11.

Exemptions; classes of goods Materials for manufacturers to be tax free Powers of Minister to exempt and refund Failure to comply with condition subject to which exemption or refund was granted

12A. 13. 26. etc. Surrender and revocation of licences Exemptions from licensing PART VI RATES OF TAX AND COMPUTATION OF TAX PAYABLE 15.fm Page 4 Friday. 19. 14. 21. 23. DRAWBACK. 20. 18. REFUND AND REMISSION 22. 13A. 25. etc. Taxable persons Direction to treat persons as a single taxable person Application for licence. 16. 17A. RECOVERY. 2006 5:54 PM 4 Laws of Malaysia PART V TAXABLE PERSONS—LICENSING A CT 64 Section 12. RECORDS. .064e (A1183). Powers of Minister to fix the rates of sales tax by orders to be approved by the House of Representatives Computation of tax payable PART VII INVOICES. March 31. RETURNS AND ASSESSMENT 17. When taxes become due and payable Sales tax to be recovered as civil debt Penalty for late payment Goods subject to the control of Customs not to be delivered until sales tax paid as demanded Joint and several liability of directors. issue. 24. Invoices Production of invoices by computer Duty to keep records Furnishing of returns Assessment of tax on goods sold or manufactured Assessment of tax on goods imported PART VIII COLLECTION.

064e (A1183). 38. etc.fm Page 5 Friday. 2006 5:54 PM Sales Tax Section 5 27. SEIZURE AND ARREST 34. 29. vessels and aircraft Access to recorded information or computerized data Seizure of goods the subject of an offence Release of vehicle. from person owing money to taxable person Drawback Payment of sales tax. 30. 43A... 37. 31. 39. etc. 31C. 31D. 28. short paid or erroneously refunded and payments by instalments Vendor may apply for refund Application for deduction by licensed manufacturer Credit notes Refund for bad debt Repayment of refund Return of sales tax or penalty overpaid or erroneously paid Remission PART IX INSPECTION. 35. Persons about to leave Malaysia Recovery of sales tax. Failure to comply with notice. 31B. 27A.. 32. etc. etc. SEARCH. from persons leaving Malaysia Power to collect sales tax. 31A. 41. 42. vessel or aircraft under bond Powers of arrest PART X CRIMINAL OFFENCES 43. 40. Evasion of sales tax . 36. Persons bound to give information Senior officers of sales tax may take samples Access to places or premises Magistrate may issue search warrant When search may be made without warrant Power to stop and search vehicles. 33. 39A. March 31.

49. 58. 52. 57. Regulations . 53. 50. 59A. 51. Abetting an offence Offences by corporate bodies (Deleted) PART XI PROVISIONS AS TO TRIALS AND PROCEEDINGS 47. 60. 60A.fm Page 6 Friday. 61.064e (A1183). 55. 2006 5:54 PM 6 Section Laws of Malaysia 44. March 31. 59. 45. 48. 54. Sessions Court to have full jurisdiction A CT 64 Proportional examination of goods seized to be accepted by courts Evidence of analysis may be given in writing Proof as to registration or licensing of vessels and conveyances in Malaysia or Singapore Manner of seizure not to be enquired into on trial before court or on appeal to High Court Obligation of secrecy Protection of informers from discovery Goods liable to seizure liable to forfeiture Court to order disposal of goods seized Goods seized in respect of which there is no prosecution deemed to be forfeited if not claimed within one month Minister may order return of goods seized Compounding of offences Burden of proof Conviction under other law Court order No costs or damages arising from seizure to be recoverable unless seizure without reasonable or probable cause Protection of public officer PART XII REGULATIONS 51A. 46. 56.

76. 75. Interpretation Sales tax on goods imported into or exported from Labuan. or transported to or from Labuan. 2006 5:54 PM Sales Tax PART XIII MISCELLANEOUS Section 7 62. (Deleted) . 70. Service of notices. 74. 69. 73. 67. 65. 71. Clerks and servants may transact business Transaction of business on behalf of taxable person Licensee to furnish audit certificate Rewards Forms to be used Power of Director General to charge fees Disputes and appeals Liquidator of company to give notice of winding-up. 78. March 31. 64. 63A. 63.fm Page 7 Friday. 66. 77. from or to the principal customs area Goods manufactured in Labuan deemed to be goods manufactured outside Malaysia Transportation of goods to or from Labuan from or to the principal customs area Declaration of goods transported from Labuan to the principal customs area Taxable goods to be deemed non-taxable while in Labuan Collection of taxes in Labuan Application of section 29 to goods transported to Labuan PART XV (Deleted) 80. 68. etc. 79. and set aside tax Appointment of receiver to be notified to the Director General Taxable period other than two calendar months PART XIV SPECIAL PROVISIONS DEALING WITH LABUAN 72.064e (A1183).

86. 85. 82. 90. or transported to or from Langkawi. from or to the principal customs area Goods manufactured in Langkawi to be goods manufactured outside Malaysia Transportation of goods to or from Langkawi from or to the principal customs area Declaration of goods transported from Langkawi to the principal customs area Taxable goods to be deemed non-taxable while in Langkawi Collection of taxes in Langkawi Application of section 29 to goods transported to Langkawi PART XVIIA SPECIAL PROVISIONS DEALING WITH TIOMAN 90A. 88. 90F. Interpretation Sales tax on goods imported into or exported from Langkawi. 2006 5:54 PM 8 Laws of Malaysia PART XVI (Deleted) A CT 64 Section 81. 90H.064e (A1183). 87.fm Page 8 Friday. 90E. (Deleted) (Deleted) PART XVII SPECIAL PROVISIONS DEALING WITH LANGKAWI 83. 89. 84. 90D. 90C. 90B. 90G. March 31. Interpretation Sales tax relating to Tioman Goods manufactured in Tioman to be deemed goods manufactured outside Malaysia Transportation of goods from or to Tioman to or from the principal customs area Declaration of goods transported from Tioman to the principal customs area Taxable goods to be deemed non-taxable while in Tioman Collection of taxes in Tioman Application of section 29 to goods transported to Tioman .

XVII and XVIIA not to have effect . 92.fm Page 9 Friday. 94. 95. Certain provisions of the Act to apply Varying the due-and-payable period and taxable period Delivery of petroleum subject to customs control before payment of sales tax No drawback Parts XIV. 93. 2006 5:54 PM Sales Tax PART XVIII SPECIAL PROVISIONS DEALING WITH PETROLEUM Section 9 91. March 31.064e (A1183).

2006 5:54 PM .fm Page 10 Friday.064e (A1183). March 31.

(2) This Act shall apply throughout Malaysia. In this Act. “company” means a company as defined in the Companies Act 1965 [Act 125].U. and includes a body corporate established by or under Federal or State law and any body which the Minister may by order declare to be a company for the purposes of this Act. commerce. and by the authority of the same.fm Page 11 Friday.064e (A1183). (1) This Act may be cited as the Sales Tax Act 1972. Interpretation 2. unless the context otherwise requires— “business” includes any trade. as follows: P ART I PRELIMINARY Short title and application 1. [29 February 1972. (3) This Act shall not apply to the area known as the Joint Development Area. . “calendar month” means a month reckoned according to the Gregorian calendar. 2006 5:54 PM 11 LAWS OF MALAYSIA Act 64 SALES TAX ACT 1972 An Act to make provision for the charging.(B)72/1972] BE IT ENACTED by the Seri Paduka Baginda Yang di-Pertuan Agong with the advice and consent of the Dewan Negara and Dewan Rakyat in Parliament assembled. levying and collecting of sales tax. manufacture. March 31. or any concern in the nature of trade. P. commerce or manufacture.

“Customs” means the Royal Malaysian Customs and Excise Department.fm Page 12 Friday. “customs control” shall have the meaning assigned to it under subsection 2(2) of the Customs Act 1967 [Act 235]. “electronic data interchange” means the transfer. “licensed manufacturer” means a manufacturer holding a licence for the time being in force under this Act. “licensed warehouse” means a warehouse or other place licensed under section 65 of the Customs Act 1967. shape or nature of such materials and includes the assembly of parts into a piece of machinery or other products. appointed under subsection 3(1) of the Customs Act 1967. 2006 5:54 PM 12 Laws of Malaysia A CT 64 “computer” has the meaning assigned thereto in section 3 of the Evidence Act 1950 [Act 56]. “customs warehouse” shall have the meaning assigned to it under subsection 2(1) of the Customs Act 1967. but does not include the installation of machinery or equipment for the purpose of construction. and . “Director General” means the Director General of Customs and Excise. “Joint Development Area” shall have the meaning assigned to it under section 2 of the Malaysia-Thailand Joint Authority Act 1990 [Act 440]. March 31.064e (A1183). the conversion by manual or mechanical means of organic or inorganic materials into a new product by changing the size. from computer to computer. “manufacture” means— (a) in relation to goods other than petroleum. “excise control” shall have the meaning assigned to it under subsection 2(2) of the Excise Act 1976 [Act 176]. “goods” means all kinds of movable property. of commercial and administrative transactions using an agreed message standard to structure the data pertaining to a transaction. “document” has the meaning assigned thereto in section 3 of the Evidence Act 1950.

“prescribed” means prescribed by regulations made under this Act. “petroleum” shall have the meaning assigned to it under subsection 2(1) of the Customs Act 1967. . “officer of sales tax” means any officer of customs. a company and every other juridical person. “senior officer of sales tax” means any senior officer of customs as defined in subsection 2(1) of the Customs Act 1967. “surcharge” means any charge that is due and payable under subsection 30(1B ). a society. and also includes the disposal of goods with a right of purchase or on terms providing that the seller retains an interest in the goods. as defined in subsection 2(1) of the Customs Act 1967. an association. “taxable goods” means goods of a class or kind not for the time being exempted from sales tax. and “to sell” has a corresponding meaning. “person” includes an individual. “proper officer” means any officer acting in the fulfilment of his duties under this Act. refining or compounding and includes the addition of any foreign substance. March 31. “Minister” means the Federal Minister charged with the responsibility for finance. “penalty” means any charge due and payable under section 24. “manufacturer” means a person who engages in the manufacture of goods. “sale” includes barter. 2006 5:54 PM Sales Tax (b) 13 in relation to petroleum. or expressly or by implication. “regulations” means regulations made under section 61. and “to manufacture” has a corresponding meaning. a firm. “sales tax” means the tax payable under this Act.064e (A1183).fm Page 13 Friday. and the delivery of goods under any condition as to future payment. whether such duties are assigned to him specially or generally.

“taxable person” means any person who is. (1) The Director General shall have the superintendence of all matters relating to the sales tax. In this section. the expression “a licensed manufacturing warehouse” means a licensed warehouse in respect of which an additional licence to carry on any manufacturing process has been granted under section 65A of the Customs Act 1967. the expression “free zone” has the meaning assigned to it under section 2 of the Free Zones Act 1990 [Act 438]. a free zone shall be deemed to be a place outside Malaysia. PART II ADMINISTRATION Functions and powers of Director General and other officers 3. other than those conferred by subsection 15(5). In this section. Licensed warehouse and licensed manufacturing warehouse deemed outside Malaysia 2B. two calendar months. For the purpose of this Act. March 31. shall have and exercise all powers conferred on the Director General by or under this Act. or is required to be. 2006 5:54 PM 14 Laws of Malaysia A CT 64 “taxable period” means. subject to the direction and control of the Minister. subject to section 71.064e (A1183). (2) Subject to the general direction and supervision of the Director General. a licensed warehouse and a licensed manufacturing warehouse shall be deemed to be a place outside Malaysia. licensed under this Act. Free zone 2A. For the purpose of this Act. all officers of Customs and Excise appointed under section 3 of the Customs Act 1967 and holding the rank of Superintendent or any rank higher than that of Superintendent.fm Page 14 Friday. .

Authority cards. and to make all due enquiries in relation thereto. demand or order made by any officer acting or purporting to act under this Act. (2) It shall not be an offence for any person to refuse to comply with any request. on demand declare his office and produce to the person against whom he is acting such badge or authority card as he has been directed to carry under subsection 9(1) of the Customs Act 1967. to be produced 5. used or disposed of by . etc. the provisions of this Act. if done by or with any person appointed by the Director General to act for such particular officer. 2006 5:54 PM Sales Tax 15 (3) It shall be the duty of any proper officer to enforce. (4) Every person employed on any duty or service relating to the sales tax by the order or with the concurrence of the Director General (whether previously or subsequently expressed) shall be deemed to be the proper officer for that duty or service. PART III CHARGE TO TAX Charge to tax 6. and ensure due compliance with. sales tax shall be charged and levied on all taxable goods— (a) manufactured in Malaysia.064e (A1183). shall be deemed to be done by or with such particular officer. Subject to this Act. (1) Every officer when acting against any person under this Act. Every person employed on any duty or service relating to the sales tax shall be deemed to be a public servant within the meaning of the Penal Code [Act 574]. by a taxable person and sold.fm Page 15 Friday. Officers to be public servants 4. if such officer is not in uniform and refuses to declare his office and produce his badge or authority card on demand being made by such person. or with any particular officer nominated for such purpose. or acquired under section 9. shall. if not in uniform.. March 31. and every act required by law at any time to be done by.

(b) (c) (3) Where goods are manufactured on behalf of any supplier of taxable goods from taxable goods supplied by him and the goods so manufactured are returned to the supplier of the taxable goods. namely— (a) the value of such goods for the purpose of customs duty determined in accordance with the Customs Act 1967. (2) In the case of goods imported into Malaysia for home consumption. (b) imported into Malaysia by any person for home consumption. if any. otherwise than by sale or disposal to a licensed manufacturer authorized by the Director General to acquire such goods without payment of tax. the sale value of the goods shall be the sum of the following amounts. 2006 5:54 PM 16 Laws of Malaysia A CT 64 him. then the sale value of the goods so manufactured may. be the amount that the manufacturer charges for work performed by him.fm Page 16 Friday. payable on such goods. subject to approval of the Director General. payable on such goods. (1) In the case of goods— (a) (b) sold by a taxable person. if any. or manufactured or acquired under section 9 by a taxable person and— (i) (ii) used by him otherwise than as materials in the manufacture of taxable goods. Determination of sale value 7.064e (A1183). and the amount of excise duty. the sale value of such goods shall be determined in accordance with regulations made under this Act. or disposed of by him otherwise than by sale. . the amount of customs duty. March 31.

such manufacturer may import such goods as may be approved by the Director General free of sales tax provided such person is authorized by the Director General to import such goods free of sales tax. to acquire such goods free of sales tax. any goods or class of goods from the whole or any part of the sales tax. (2) Where a licensed manufacturer imports taxable goods. (1) Where any licensed manufacturer acquires taxable goods from another licensed manufacturer. or any person or class of persons from payment of the whole or any part of the sales tax. classes of goods 8. 2006 5:54 PM Sales Tax P ART IV EXEMPTIONS AND REFUND 17 Exemptions. such person may deliver such goods as may be approved by the Director General free of sales tax provided such person is authorized by the Director General to import such goods on behalf of and for delivery to a licensed manufacturer free of sales tax. (4) Where a person who is not licensed acquires taxable goods from a licensed manufacturer on behalf of and for delivery to another licensed manufacturer.fm Page 17 Friday. subject to such conditions as he may deem fit to impose. which otherwise would have been payable. subject to such conditions as may be prescribed. subject to such conditions as may be prescribed. The Minister may by order exempt. such person may acquire and deliver such goods as may be approved by the Director General free of sales tax provided such person is authorized by the Director General to acquire such goods from a licensed manufacturer on behalf of and for delivery to another licensed manufacturer free of sales tax. March 31. subject to such conditions as may be prescribed. such first mentioned manufacturer may acquire such goods as may be approved by the Director General free of sales tax provided such person is authorized by the Director General and subject to such conditions as may be prescribed.064e (A1183). . Materials for manufacturers to be tax free 9. (3) Where a person who is not licensed imports taxable goods on behalf of and for delivery to a licensed manufacturer.

064e (A1183). March 31. (5) or (6) may be withdrawn at the discretion of the Director General at any time. Powers of Minister to exempt and refund 10. such manufacturer may acquire such goods as may be approved by the Director General free of sales tax. (7) Any approval and authority granted under subsection (1). direct the refund to any person or class of persons of the whole or any part of the sales tax paid by such person or such class of persons. (b) (c) Failure to comply with condition subject to which exemption or refund was granted 11. or direct the refund to any person or class of persons of the whole or any part of the penalty paid by such person or such class of persons. If— (a) any goods in respect of which an order has been made . The Minister may. (6) Where a licensed manufacturer acquires taxable goods which are deposited or kept in a customs warehouse or a warehouse licensed under section 65 of the Customs Act 1967.fm Page 18 Friday. the first mentioned manufacturer may acquire back such goods as may be approved by the Director General free of sales tax. (2). (4). provided such manufacturer is authorized by the Director General to acquire back such goods free of sales tax. in any particular case. subject to such conditions as may be prescribed and for the purpose of this Act such goods shall be construed as being manufactured by the first mentioned manufacturer. 2006 5:54 PM 18 Laws of Malaysia A CT 64 (5) Where a licensed manufacturer requires another licensed manufacturer to complete the manufacture of taxable goods. subject to such conditions as he may deem fit to impose— (a) exempt any person or class of persons from the payment of the whole or any part of the sales tax which otherwise would have been payable by such person or such class of persons. provided such manufacturer is authorized by the Director General to acquire such goods from a customs warehouse or licensed warehouse free of sales tax subject to such conditions as may be prescribed. (3).

shall be jointly and severally liable to pay such sales tax. 2006 5:54 PM Sales Tax 19 under section 8 are subsequently disposed of contrary to any condition to which such exemption was made subject. as the case may be. PART V TAXABLE PERSONS—LICENSING Taxable persons 12. whether for profit or otherwise. then such sales tax shall be payable and any person found in possession of such goods. in respect of taxable goods manufactured by him in the course of such business. or the person to whom the exemption was granted. (2) For the purposes of subsection (1). or (b) any person to whom an exemption has been granted or refund directed under this Part fails or ceases to comply with any condition subject to which such exemption was granted or refund directed. sales tax shall be computed and paid by— (a) any taxable person who carries on a business in Malaysia. in respect of such goods. any person who imports taxable goods into Malaysia.064e (A1183). Subject to this Act. (1) Notwithstanding sections 12 and 13. where the Director General is satisfied that any separation of business activities is artificial. regard shall be . in determining whether any separation of business activities is artificial. or refund has been directed. March 31. he may make a direction under this section directing that the persons named in that direction shall be treated as a single taxable person carrying on the activities of the business described in that direction and that single taxable person shall not continue to carry on the activities of such business unless he is licensed within twenty-one days from the date the direction is served on the last such persons of from such later date as may be specified in that direction.fm Page 19 Friday. (b) Direction to treat persons as a single taxable person 12A.

any person . the person carrying on that business would. or both. that the activites in the course of which the person manufactures or has manufactured those taxable goods form only part of certain activites in the business and that the other activities in that business (whether or not they are similar to the activites carried on by that person) are being carried on concurrently or previously. (c) (4) Any direction made under this section shall be served on each of the persons named in it. (6) Where.064e (A1183). after a direction has been given under this section specifying a description of the business. by one or more other persons. (5) Where. the Director General may make and serve on that person a supplementary directon referring to the earlier direction and the description of business specified in it. it appears to the Director General that any person who has not been named in that direction is manufacturing taxable goods in the course of activities which should be regarded as part of the activities of the business. 2006 5:54 PM 20 Laws of Malaysia A CT 64 had to the extent to which the different persons carrying on those business activities are closely bound to one another by financial. March 31. and that if all taxable goods manufactured in that business were taken into account. the date with effect from which the single taxable person referred to in the earlier direction is licensed under subsection (1). (3) The Director General may make a direction under this section naming any person if the Director General is satisfied— (a) (b) that the person is manufacturing or has manufactured taxable goods. immediately before any direction (including a supplementary direction) is made under this section. at the time of such direction.fm Page 20 Friday. economic and organizational links. and adding that person’s name to those of the persons named in the earlier direction with effect from— (a) (b) the date on which that person began to manufacture the taxable goods. be required to be licensed by virtue of section 13. or if the date of the earlier direction was later than the date mentioned in paragraph (a).

and (b) (c) (d) . March 31. and upon the revocation of his licence he together with all the persons named in the direction shall be treated as a single taxable person under this section. his licence shall be revoked by the Director General with effect from— (a) (b) the date the single taxable person is licensed under subsection (1).fm Page 21 Friday. or such later date as may be specified in that direction.064e (A1183). in default of such a nomination. each of the constituent members shall be jointly and severally liable for any sales tax payable by the single taxable person. (8) Where any direction is made under this section. the persons named in such direction together with any person named in a supplementary direction relating to that business (being the persons who together are to be treated as a single taxable person) are in subsections (8) and (9) referred to as “the constituent members”. any taxable goods manufactured by one of the constituent members in the course of the activites of the single taxable person shall be treated as being taxable goods manufactured by the single taxable person. then for the purposes of this Act— (a) the single taxable person carrying on the business specified in the direction shall be licensed in such name as the persons named in the direction may jointly nominate by notice in writing given to the Director General not later than fourteen days after the date the direction is served on the last of such persons or. in such name as may be specified in the direction. without prejudice to paragraph (c). any failure by the single taxable person to comply with any requirement imposed by or under this Act shall be treated as a failure by each of the constituent members severally. 2006 5:54 PM Sales Tax 21 named in the direction is licensed in respect of taxable goods manufactured by him as mentioned in subsection (3) or (5). (7) In relation to a business specified in a direction under this section.

the Director General shall issue a licence in the prescribed form. (4) Before any licence is granted under this section. the constituent members shall be treated as a partnership carrying on the business of the single taxable person and any question as to the scope of the activities of that business at any time shall be determined accordingly. he may require a new security in lieu thereof. 13. or the licensed manufacturer. (3) Subject to subsection (4). as the case may be.fm Page 22 Friday. (1) Every person who manufactures taxable goods in the course of business shall apply to the senior officer of sales tax in the prescribed form to be licensed as a licensed manufacturer. to give such security for the due compliance by that person with the provisions of this Act and generally for the protection of the revenue as the Director General thinks fit. (2) (Deleted by Act 337). no person shall manufacture taxable goods in the course of business unless such person is in possession of a licence issued under subsection (3). issue. etc. March 31. or in addition thereto. 2006 5:54 PM 22 (e) Laws of Malaysia A CT 64 subject to paragraphs (a) to (d). . Application for licence. and to being satisfied that a licence is required in the terms of paragraph 12(a) and subsection (1) of this section. or where a licence has been granted under this section. and in default of such new security being given the Director General may suspend any licence previously granted.064e (A1183). During any such suspension the holder of any licence granted shall be deemed to be unlicensed. that person shall not have any liability by virtue of those paragraphs for anything done after the date specified in that notice and accordingly on that date he shall be treated as having ceased to be a member of the partnership referred to in paragraph (8)(e). the Director General may require the person applying for the licence. and where the Director General is at any time dissatisfied with any security given. and subject to section 14. (9) Where it appears to the Director General that any person who is one of the constituent members should no longer be regarded as such for the purposes of paragraphs (8)(c) and (d) and the Director General gives notice to that effect.

Exemptions from licensing 14. March 31. The Minister may by order exempt. subject to such conditions as he may deem fit to impose. and if such person continues to carry on the same business after such revocation. (3) If any taxable person fails to act or is found acting contrary to sections 17.fm Page 23 Friday. or dies. (2) If any taxable person ceases to carry on business as such. after considering the representation of a person made under subsection (5) that the licence of the person should be revoked. he shall forthwith surrender his licence to the Director General. 17 A. the Director General shall serve a notice of revocation of the licence on the person to whom the licence was issued and that licence is revoked with effect from the date as specified in the notice. Surrender and revocation of licences 13A. the Director General shall serve a notice on the person to whom the licence was issued informing him of the proposed revocation and giving him an opportunity to make representation on the matter. he shall serve a notice of revocation of the licence on the person informing him that his licence is revoked from the date specified in the notice. the Director General may revoke the licence. or subsections 22(1) and (2). (6) Where the Director General is satisfied. notwithstanding that any person is exempted under such order. the Director General shall revoke the licence. (5) Before revoking a licence under subsection (3). 19. such person may apply to be licensed as a . he shall be deemed to carry on the business without a licence under this Act. 18. (1) If any taxable person ceases to carry on business. (4) Before revoking a licence under subsection (2). 2006 5:54 PM Sales Tax 23 (5) Any person licensed as a manufacturer shall carry on business only at the place or places specified in the licence issued under subsection (3). any class of persons from subsection 13(1): Provided that.064e (A1183). or being a company is dissolved.

no sales tax repayable under subsection (3) of this section shall be repaid. if such period has been extended. such question shall be decided by the Director General. (2) Any order made under subsection (1) of this section shall. (3) Where an order ceases to have effect in whole or in part as provided by subsection (2) of this section. fix the rates of sales tax to be levied under this Act. of such part thereof as ceases to have effect shall. (1) The Minister may. within such extended period. from time to time. P ART VI RATES OF TAX AND COMPUTATION OF TAX PAYABLE Powers of Minister to fix the rates of sales tax by orders to be approved by the House of Representatives 15. by general or special order. at the expiration of one hundred and twenty days from being so laid or of such extended period as the House of Representatives may. direct. at the next meeting of the House of Representatives be laid before such House and shall. by resolution. 2006 5:54 PM 24 Laws of Malaysia A CT 64 licensed manufacturer. . subject to subsection (4) of this section. unless the person entitled to such repayment makes a claim therefor to the Director General within one year from the day on which the order ceases to have effect in whole or in part as provided by subsection (2) of this section. require. as the case may be. cease to have effect if and insofar as it is not confirmed by a resolution passed by the House of Representatives within the said one hundred and twenty days or. by order published in the Gazette.fm Page 24 Friday. (5) If any question arises whether any particular goods are or are not included in a class of goods appearing in an order under subsection (1) of this section. March 31. whereupon the provisions of this Act shall apply to such person.064e (A1183). (4) Unless the Minister shall otherwise direct. be repayable to the person by whom such sales tax was paid. then any sales tax levied in pursuance of such order or. and such claim shall be made in writing and shall contain such particulars as the Director General may.

used or disposed of. or on the quantity of goods sold. (4) (Deleted by Act A782).064e (A1183). (2) No invoice showing an amount which purports to be sales tax shall be issued on the sale of any goods— (a) (b) which are not taxable goods. (1) Every taxable person who sells any taxable goods shall issue an invoice in the national language or in English to the purchaser in respect of the transaction. Subject to this Act. (1) Subject to subsection (2). Production of invoices by computer 17A. or imported. and shall state thereon the amount of sales tax payable separately to the prices for which the goods are sold as well as the quantities of goods sold. 2006 5:54 PM Sales Tax Computation of tax payable 16. at the rate in force at the time at which the sales tax is due. sales tax shall be levied— (a) (b) 25 on the sale value at the rate in force at the time at which the sales tax is due. for the purposes of any provision under this Act in relation to an invoice. RETURNS AND ASSESSMENT Invoices 17. a taxable person shall be treated as having issued an invoice to a purchaser notwithstanding that there is no delivery of any equivalent document in paper form to the purchaser if the requisite information is recorded in a computer and— . March 31.fm Page 25 Friday. P ART VII INVOICES. (3) The amount of sales tax payable shall be recoverable by the taxable person from the purchaser in addition to the price and any other amount due by the purchaser in respect of the goods. RECORDS. or by a person who is not a taxable person.

through that (ii) subject to such conditions as he may deem fit to impose. and such other . March 31. or to receive the document transmission or delivery. (1) Every taxable person shall. keep full and true records written up to date of all transactions which affect or may affect his liability to sales tax.fm Page 26 Friday.064e (A1183). (2) The records which are required to be kept in accordance with this section shall be preserved for a period of six years from the latest date to which such records relate. (2) No provision in relation to computer invoice shall be treated as having been complied with unless the taxable person and the purchaser— (a) have obtained the Director General’s approval in writing— (i) to transmit the document by electronic means. Furnishing of returns 19. and (b) comply with such requirements as may be determined by the Director General. the amount of sales tax payable on those goods. 2006 5:54 PM 26 (a) (b) Laws of Malaysia A CT 64 is transmitted to the purchaser by electronic means. (1) Every taxable person shall within twenty-eight days after the end of each taxable period deliver to the proper officer a return in the prescribed form setting forth the aggregate amount of the sale value of all taxable goods sold by him during that period. Duty to keep records 18. or is produced on any material other than paper and is delivered to the purchaser. or to produce the document by means of a computer on any material other than paper and to deliver that document. in accordance with regulations made under this Act.

March 31. permit any licensed manufacturer to deliver the return required under subsection (1) at any interval longer than one taxable period but in no case shall any such interval be longer than six consecutive taxable periods. 2006 5:54 PM Sales Tax 27 particulars as may be prescribed or as may be required by the Director General. at his discretion. is to be delivered within twenty-eight days of the end of such period and thereafter subsection (1) will apply. he may assess the sales tax at such greater amount as he deems fit and a notice in writing of such amount shall be served on such person. . and the return shall be verified by declaration in the prescribed form. and sales tax may be assessed by the proper officer accordingly. (1) Any return furnished under section 19 may be accepted by the proper officer as sufficient proof of the matters therein contained. Assessment of tax on goods sold or manufactured 20. The sales tax payable on any goods under paragraph 6(b) shall be assessed by the proper officer. Assessment of tax on goods imported 21. (3) Any permission granted under subsection (2) may be withdrawn by the Director General at his discretion at any time whereupon a return. (2) If the proper officer has reason to believe that the amount of sales tax shown in a return made by any taxable person under section 19 as payable on any goods is less than the amount payable under this Act. covering the period from the beginning of the first consecutive taxable period for which a return has not been delivered to the end of the taxable period in which the permission is withdrawn. (2) The Director General may. (3) If the proper officer has reason to believe that sales tax is payable on any goods under paragraph 6(a) by any person who has not made a return in respect thereof. he may assess the sales tax at such amount as he deems fit and a notice in writing of such amount shall be served on such person.064e (A1183).fm Page 27 Friday.

but such person shall be deemed to be a taxable person and required to be licensed under section 13 in relation to such goods for the purposes of this Act. or beneficiary on the decease of such taxable person. or receiver. disposed of otherwise than by sale or first used otherwise than as material in the manufacture of taxable goods. DRAWBACK. by the taxable person.fm Page 28 Friday. (3) Any sales tax chargeable under paragraph 6(b) shall be due and payable— (a) in the case of goods cleared for home consumption directly at the port of importation. RECOVERY. in the case of goods removed to a customs warehouse or a licensed warehouse subsequent to importation. (2) Any sales tax chargeable under paragraph 6(a) which falls due during any taxable period shall be payable within twentyeight days from the expiration of that taxable period. 2006 5:54 PM 28 Laws of Malaysia P ART VIII COLLECTION. at the time of final clearance from such warehouse for home consumption. (1) The sales tax chargeable under paragraph 6(a) shall be due at the time the taxable goods are sold. March 31. and there cleared for home consumption.064e (A1183). REFUND AND REMISSION A CT 64 When taxes become due and payable 22. . (b) (4) Where any taxable person who ceases to carry on business as a manufacturer is succeeded in such business by a person who— (a) (b) purchases from him any stock of taxable goods which is on hand at the date of cessation. or goods entered for removal to an inland station. at the time of final Customs clearance. or acquires such stock as a trustee. no sales tax shall be due on such purchase or acquisition. or liquidator or donee.

for the sale of such taxable goods. 2006 5:54 PM Sales Tax 29 (5) Where any taxable person who ceases to carry on business as a manufacturer has in stock any taxable goods on which sales tax has not been paid and where subsection (4) does not apply. as the case may be. as the case may require. penalty. (2) In any suit to recover the sales tax. if any. be recoverable as if it were sales tax due and payable under this Act and accordingly subsection 6(4) of the Limitation Act 1953. section 3 of the Limitation Ordinance of Sabah or section 3 of the Limitation Ordinance of Sarawak. if any. Cap 49]. and he shall pay sales tax thereon accordingly. (1) Without prejudice to any other remedy. due by him shall be sufficient authority for the Court to give judgment for the same amount. such person shall include particulars of those goods in the return to be furnished by him for his last taxable period as if such goods had been sold by him during such taxable period. or so much of the total amount shown as payable as is to be taken as representing sales tax.fm Page 29 Friday. Sales tax to be recovered as civil debt 23. (4) Where an invoice shows a sale of taxable goods as having taken place with sales tax chargeable on the goods. if sales tax is not separately shown in the invoice. 72] or the Limitation Ordinance of Sarawak [Swk.064e (A1183). for the purposes of this Act and the Limitation Act 1953 [Act 254]. or surcharge. under subsection (1). (3) Any penalty or surcharge imposed under this Act shall. penalty or surcharge. March 31. may be recovered by the Minister as a civil debt due to the Government. shall not apply to that penalty or surcharge. . there shall be recoverable from the taxable person who issued the invoice an amount equal to— (a) (b) that which is shown in the invoice as sales tax. any sales tax due and payable and any penalty or surcharge accruing under this Act. the Limitation Ordinance of Sabah [Sabah Cap. the production of a certificate signed by the Director General giving the name and address of the taxable person and the amount of sales tax.

2006 5:54 PM 30 Laws of Malaysia A CT 64 (5) Subsection (4) shall also apply where— (a) the invoice. Where any amount of sales tax remains unpaid after the last day on which it was payable under subsection 22(2) or repayable under section 31D. March 31. (b) the invoice was issued by a person who was not a taxable person and who had sold either taxable goods or non-taxable goods for which an amount which purports to be sales tax was chargeable. may be recovered as a civil debt due to the Government.fm Page 30 Friday. is not an invoice issued under section 17 or 17A. Penalty for late payment 24. no person shall be entitled to obtain delivery of such goods from the control of the *NOTE—Previously “two per cent” – see Sales Tax (Amendment) Act 1999 [Act A1058]. Goods subject to the control of Customs not to be delivered until sales tax paid as demanded 25. in which is stated an amount which purports to be sales tax as chargeable. (c) and any amount which purports to be sales tax shall be paid immediately by that person and in default of payment.064e (A1183). as the case may be — (a) *(b) a penalty equal to ten per cent of such unpaid amount shall thereupon be payable. if the sales tax due and payable remains unpaid for more than thirty days after the last day on which it was so payable or repayable the rate of penalty under paragraph (a) on such unpaid sales tax shall be increased by ten per cent for the second period of thirty days after such last day and for every succeeding period of thirty days or part thereof during which such amount remains unpaid to a maximum of fifty per cent. In the case of imported taxable goods. . or the invoice was issued by a taxable person who had sold non-taxable goods for which an amount which purports to be sales tax was chargeable.

if the Director General deems fit. Where any sales tax. including any persons who were members of such society. be jointly and severally liable for the sales tax. association or other body of persons. including any persons who were partners of such firm. society. penalty or surcharge. association or other body of persons.fm Page 31 Friday. the taxable person shall be notified accordingly. then notwithstanding anything to the contrary in this Act or in any other Act. shall together with such company. the sales tax shall. the directors of such company shall only be so liable where the assets of the company are insufficient to meet the amount due.064e (A1183). etc. March 31. from persons leaving Malaysia 27A. penalty or surcharge payable: Provided that in relation to a company that is being wound up. penalty or surcharge is due and payable by— (a) a company. if the whereabouts of the taxable person are known to the Director General. 26. Recovery of sales tax. or the members of such society. Joint and several liability of directors. (b) a firm. association or other body of persons. etc.. during such taxable period. firm. 2006 5:54 PM Sales Tax 31 Customs until the sum assessed by the proper officer by way of sales tax on those goods has been paid in full. an association or other body of persons. or (c) a society. be payable on such earlier date as the Director General determines and. the directors of such company including persons who were directors of such company. or the partners of such firms. as the case may be. Persons about to leave Malaysia 27. (1) Where the Director General has reason to believe that any person is about or is likely to leave Malaysia without paying— . after paying any sums having priority under the Companies Act 1965 in relation to the application of the assets of the company in such winding up over the sales tax. If the Director General has reason to believe that a taxable person is about to leave Malaysia before any sales tax due by him becomes payable in accordance with the provisions of this Act.

A CT 64 any surcharge payable by him under subsection 30(1 B ). any Director of Immigration who receives a request under subsection (1) in respect of a person shall exercise all measures which may include the removal and retention of any certificate of identity. that statement shall be sufficient authority for allowing that person to leave Malaysia. any penalty payable by him under section 24. (5) No legal proceedings shall be instituted or maintained against the Government. surcharge or other moneys so payable with a request that such person be prevented from leaving Malaysia unless and until he pays the sales tax. 2006 5:54 PM 32 (a) (b) (c) (d) Laws of Malaysia any sales tax payable by him. surcharge or other moneys so payable. March 31. (3) The Director General shall cause a notice of the issue of a certificate under subsection (1) to be served personally or by registered post on the person to whom the certificate relates: Provided that the non-receipt of the notice by that person shall not invalidate anything done under this section. or that security has been furnished for its payment. he may issue to any director of Immigration a certificate containing particulars of the sales tax. a State Government or any other public officer in respect of anything lawfully done under this section. (2) Subject to any order issued or made under any written law for the time being in force relating to banishment or immigration.fm Page 32 Friday. passport. exit permit or other travel documents in relation to that person as may be necessary to give effect to the request. or any other moneys recoverable from him under this Act. . surcharge or other moneys specified in the certificate have been paid. (4) Where the person in respect of whom a certificate has been issued under subsection (1) produces on or after the date of the certificate a written statement signed by the Director General stating that all the sales tax. or furnishes security to the satisfaction of the Director General for their payment. penalty.064e (A1183). penalty. penalty.

“Director of Immigration” means any Director of Immigration appointed under subsection 3(1A) of the Immigration Act 1959/1963 [Act 155]. Drawback 29. any person who holds or may subsequently hold money for or on account of the taxable person. March 31. from person owing money to taxable person 28. 2006 5:54 PM Sales Tax 33 (6) In this section. by notice in writing (a copy of which shall be forwarded to the taxable person at his last known place of address) require— (a) (b) (c) any person by whom any money is due or accruing or may become due to the taxable person.064e (A1183). . (d) to pay to him forthwith. be allowed. any person who holds or may subsequently hold money on account of some other person for payment to the taxable person. Power to collect sales tax. such money (not being salary or wages due or accruing due to the taxable person) or so much thereof as is sufficient to pay the sum due and payable by the taxable person as aforesaid. (2) All payments made pursuant to a notice under this section shall be deemed to be made on behalf of the taxable person and with the authority of the taxable person and of all other persons concerned. the Director General may. subject to regulations made under this Act. (1) Where any sum by way of sales tax. or within such time as the Director General allows.fm Page 33 Friday. Drawback of the full amount of sales tax paid in respect of goods which are subsequently exported from Malaysia may. etc.. penalty or surcharge is due and payable by a taxable person. or any person having authority from some other person to pay money to the taxable person.

any goods belonging to the person referred to in subsection (1) which may be in Excise or Customs control or at a place or places specified in the licence issued under section 13 may be seized until the sales tax. penalty or other moneys. and where the amount of sales tax is allowed to be paid by instalments under this subsection. shall pay the sales tax. are paid. 2006 5:54 PM 34 Laws of Malaysia A CT 64 Payment of sales tax. penalty or other moneys. March 31. penalty or other moneys. penalty or other moneys payable under this Act has not been paid. the person— (aa) liable to pay— (i) (ii) (bb) the sales tax. penalty or other moneys. or to whom the refund was erroneously made. provided a demand is made within three years from the date on which the sales tax. penalty or other moneys. then. has been erroneously refunded. or the deficient sales tax. (1A ) The Director General may allow the sales tax or penalty referred to in subsection (1) to be paid by instalments. (1AA) Without prejudice to subsection (1). penalty or other moneys after having been paid. in such amounts and on such dates as he may determine. penalty or other moneys were paid. or the refund was made. etc. short paid or erroneously refunded and payments by instalments 30. paragraph 24(b) shall not be . (1) Where— (a) (b) the whole or any part of any sales tax. penalty or other moneys were payable. or the refund erroneously paid to him is repaid.fm Page 34 Friday.064e (A1183). as the case may be. under such circumstances as may be prescribed by regulations made under this Act. or deficient sales tax. penalty or other moneys. or repay the refund erroneously paid to him. or the deficient sales tax.. or the deficient sales tax. or the whole or any part of any sales tax.

as the case may be. (2) Should the sales tax. (3) The proceeds of the sale of any such goods shall be applied to the payment of the sales tax. or the refund to be repaid remain unpaid. (1B ) If there is a default in payment of any one instalment under subsection (1A ) on its due date for payment of the balance of amount payable then the whole outstanding balance shall become due and payable on that date and shall. shall be paid to the owner of such goods and if the owner cannot be found within one month of the sale. such surplus shall be paid to the Consolidated Fund. (4) If at the sale of any such goods no sufficient bid is forthcoming to defray the sales tax. be subject to a surcharge equal to ten per cent of that balance and the surcharge shall be recoverable as if it were due and payable under this Act. (1C ) Nothing in subsections (1A) and (1B) shall prejudice the exercise of the rights and power under this section by the Director General to seize or sell any goods belonging to the person liable to pay such sales tax. without any further notice being served on the person liable to pay the amount due. penalty and other moneys or recovery of the amount due or other charges which may be due in respect of selling off such goods. penalty or any other moneys payable or deficient sales tax. . (5) Every auction sales shall under this section be conducted by or in the presence of a senior officer of sales tax.064e (A1183). 2006 5:54 PM Sales Tax 35 applicable to such amount as from the date the Director General allows such payment by instalments. March 31. as the case may be. the goods shall be forfeited to the Government and shall be disposed of in such manner as the Director General may direct. and the surplus if any. penalty or other moneys payable or the refund erroneously paid.fm Page 35 Friday. the Director General may after giving not less than 30 days’ notice in writing to the owner or his agent (if the name and address of such owner or agent is known to him) or after due notice in the Gazette (if the name and address of such owner or agent is not known to him) sell such goods. penalty or other moneys for recovery of the amount payable under subsections (1) and (1 B) or any outstanding balance thereof. penalty or other moneys or deficiency.

from the amount of sales tax accounted for in the return: Provided that the licensed manufacturer has issued to the purchaser a credit note containing the requisite particulars. Refund for bad debt 31C. he shall refund the vendor the amount of sales tax previously paid by such person in respect of such goods: Provided that no such refund shall be allowed unless a claim in respect thereof is made within one year after the date of the transaction to which the claim relates.064e (A1183). for the deduction of such amount of sales tax paid in respect of goods purchased by him during the taxable period to which the return relates. Subject to such conditions as may be prescribed. (1) A licensed manufacturer may apply to the Director General. Credit notes 31B. and where the Director General is satisfied that the prescribed conditions have been complied with. the vendor may apply to the Director General for a refund of the sales tax so paid in respect of the goods to which the transaction relates. in the return furnished by him in accordance with section 19. provided such manufacturer holds the approval and authorization of the Director General to acquire such goods free of sales tax. (2) The Director General shall allow the deduction applied under subsection (1) subject to such conditions as may be prescribed.fm Page 36 Friday. March 31. (1) Any person who is or has ceased to be a taxable person may make a claim to the Director General for a refund of the . the amount of sales tax paid in respect of taxable goods returned by a purchaser or discounts subsequently given to the purchaser. A licensed manufacturer in a return furnished by him in accordance with section 19 may deduct. Application for deduction by licensed manufacturer 31A. where any licensed manufacturer acquires from a person goods. 2006 5:54 PM 36 Laws of Malaysia A CT 64 Vendor may apply for refund 31. in accordance with the regulations made under this Act. in respect of which sales tax has previously been paid.

C (3) The person mentioned in subsection (1) may make a claim for the refund within six years from the date the sales tax is paid by him. (c) (2) Where the person mentioned in subsection (1)— (a) has not received any payment in respect of the sale of taxable goods. “bad debt” means the outstanding amount of the payment in respect of the sale of taxable goods including the sales tax which is due to the person but has not been paid to. (4) For the purpose of this section. and is the sales tax payable on such goods. March 31. such person may make a claim for the difference between the sales tax paid and amount calculated in accordance with the following formula: ___ (b) A × C B where A B is the payment received in respect of the sale of such taxable goods. and the Director General is satisfied that all reasonable efforts have been made by such person to recover the sales tax. is the sale value of such taxable goods plus sales tax payable on such goods.fm Page 37 Friday. . or has received any payment in respect of the taxable goods. 2006 5:54 PM Sales Tax 37 whole or any part of any sales tax paid by him in respect of taxable goods if— (a) (b) the sales tax has been paid by such person on or after 1 January 2003. and is irrecoverable by the person. such person may make a claim for the whole of the sales tax paid.064e (A1183). the whole or any part of the sales tax payable to such person has been written off in his accounts as bad debts.

2006 5:54 PM 38 Repayment of refund Laws of Malaysia A CT 64 31D. It shall be lawful for the Director General. March 31. if it is proved to his satisfaction that any sales tax or penalty has been overpaid or erroneously paid under this Act. is the sale value of such taxable goods plus sales tax payable on such goods.fm Page 38 Friday. (b) . and is the sales tax payable on such goods. Where a refund of sales tax has been made under section 31 C by the Director General to a person and any payment in respect of the sale of taxable goods for which the sales tax is payable is subsequently received by the person. to order the refund of the sales tax or penalty that was overpaid or erroneously paid subject to such limit as may be prescribed by regulations made under this Act: Provided that— (a) no such refund shall be allowed unless a claim in respect of it is made in the prescribed form within one year after the overpayment or erroneous payment was made. the person shall repay to the Director General an amount calculated in accordance with the following formula: A × C B ___ where A B is the payment received in respect of the sale of such taxable goods. and the Director General may reduce or altogether disallow any refund due under this section to the extent that the refund would unjustly enrich the claimant. C Return of sales tax or penalty overpaid or erroneously paid 32.064e (A1183).

if his duties so require. remit the whole or any part of any sales tax due and payable under this Act. The Minister may. SEARCH.fm Page 39 Friday. but the proper officer shall give a receipt of any such sample. 2006 5:54 PM Sales Tax Remission 39 33. (2) No payment shall be made for any sample taken under subsection (1). and subject to such conditions as he may deem fit to impose. or to ascertain the sales tax payable on such goods. shall produce such document or thing.064e (A1183). March 31. give such information. (1) Any senior officer of sales tax may at any time. upon being required by him to do so. SEIZURE AND ARREST Persons bound to give information 34. (2) Every person required by the proper officer to produce a document or other thing which is within the power of such person to produce. (1) Any senior officer of sales tax shall for the purposes of this Act at all times have access to any place or premises where a manufacturer or importer carries on his business. . (1) Every person having information about any matter into which it is the duty of the proper officer to inquire shall. and which is a document or thing required under this Act or a document or thing used in any transaction or other matter relating to sales tax or a document or thing into which it is the duty of the proper officer to inquire under this Act. and such samples may be disposed of in such manner as he may direct. P ART IX INSPECTION. take samples of any goods to ascertain whether they are goods of a description liable to sales tax. or for such other purposes as he may deem necessary. Access to places or premises 36. or the whole or any part of any penalty payable under section 24. Senior officers of sales tax may take samples 35. if he thinks it just and equitable to do so.

as the case may be. (3) Where the senior officer of sales tax acting under this section is unable to obtain free access to any premises where a manufacturer or importer carries on his business or to any receptacle contained therein. or other receptacle. or to any taxable goods. document or thing and take copies of any book or document. he may examine any book. (4) Where. he may.fm Page 40 Friday. document or thing. and open such receptacle. then— (a) he may require the manufacturer or importer. in any such premises. as he may think necessary. in any such premises to be opened. or to any entry in any book. document. in such manner. he may at the risk and expense of the manufacturer or importer. if in his opinion it may afford evidence of the commission of any offence under this Act. which such manufacturer or importer is required to keep under the provisions of this Act. 2006 5:54 PM 40 Laws of Malaysia A CT 64 (2) Where any senior officer of sales tax enters upon any premises in accordance with this section. on the entry upon any premises under the provisions of this section. he may take and retain without payment such samples of any goods or materials as he may think necessary for the performance of his duties. open and examine any package. he may require any container. enter such premises. or which relate to any taxable goods. document. or thing. any taxable goods are found in relation . he may seize and detain any book. document or thing. envelope. if necessary by force. he may require any manufacturer or importer or any person employed by such person or importer to answer questions relating to any book. at any time. (2 B ) (Deleted by Act A1110). (b) (c) (d) (e) (f) (g) (2 A ) (Deleted by Act A1110). to produce any book. or any goods or materials.064e (A1183). March 31.

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41

to which any offence under the provisions of this Act has been committed, then such taxable goods shall be liable to forfeiture. Magistrate may issue search warrant 37. (1) Whenever it appears to any Magistrate, upon written information upon oath and after any inquiry which he may think necessary, that there is reasonable cause to believe that in any dwelling house, shop, or other building or place, or on board any vessel or any aircraft, there are concealed or deposited any goods, books, documents or thing which may afford evidence of an offence against this Act, such Magistrate may issue a warrant authorizing any officer of sales tax named therein, at any time, and with or without assistance— (a) to enter such dwelling house, shop or other building or place, vessel, or aircraft and there to search for and seize any such goods, books, documents or things; to arrest any person being in such dwelling house, shop or other building, place, vessel or aircraft in whose possession such goods are found or who may reasonably be suspected as having concealed or deposited such goods.

(b)

(2) The officer authorized in accordance with subsection (1) may if it is necessary so to do— (a) break open any outer or inner door of such dwelling house, shop or building, place, vessel or aircraft and enter every part thereof, if necessary forcibly; remove by force any obstruction to such entry to search or to seize as he is empowered to effect; detain every person found in such dwelling house, shop or building, place, vessel or aircraft until the search has been completed.

(b) (c)

When search may be made without warrant 38. Whenever it appears to the senior officer of sales tax that there is reasonable cause to believe that in any dwelling house, shop or other building, place, vessel or aircraft there are concealed

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or deposited any goods, books, documents or things which may afford evidence of an offence against this Act, and if he has reasonable grounds for believing that by reason of the delay in obtaining a search warrant such goods, books, documents, or things are likely to be removed, he may exercise in, upon and in respect of such dwelling house, or shop or other building, place, vessel or aircraft all the powers mentioned in section 37 in the same manner as if he were empowered so to do by a warrant issued under that section. Power to stop and search vehicles, vessels and aircraft 39. (1) The proper officer may stop and examine any vehicle, vessel or aircraft for the purpose of ascertaining whether any goods in respect of which he has reason to believe that an offence against this Act has been committed are contained therein; and the person in control or in charge of such vehicle, vessel or aircraft shall, if required so to do by the proper officer, stop the same and allow the proper officer to examine it or move it to another place for search, and shall not proceed until permission to do so has been given by the proper officer. (2) The person in control or in charge of any vehicle, vessel or aircraft examined under this section shall on request by the proper officer open all parts of it for examination by the proper officer and take all measures necessary to enable such examination as the proper officer considers necessary to be made. Access to recorded information or computerized data 39A. (1) Any senior officer of sales tax exercising his powers under sections 36, 37, 38 and 39 shall be given access to any recorded information or computerized data, whether stored in a computer or otherwise. (2) In addition, a senior officer of sales tax exercising his powers under sections 36, 37, 38 and 39— (a) may inspect and check the operation of any computer and any associated apparatus or material which he has reasonable cause to suspect is or has been used in connection with that information or data; and

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Sales Tax (b) may require— (i)

43

the person by whom or on whose behalf the senior officer of sales tax has reasonable cause to suspect the computer is or has been so used; or the person having charge of, or is otherwise concerned with, the operation of the computer, apparatus or material,

(ii)

to provide him with such reasonable assistance as he may require for the purposes of this section. (3) For the purposes of subsection (1), “access” includes being provided with the necessary password, encryption code, decryption code, software or hardware and any other means required to enable comprehension of recorded information or computerized data. Seizure of goods the subject of an offence 40. (1) All goods, books, documents or things in respect of which the proper officer has reasonable cause to suspect that there has been committed any offence against this Act, or any violation of any of the provisions of this Act or of any condition subject to which any licence or permit has been granted under this Act, and any receptacle, package, vehicle, vessel not exceeding 200 tons net registered tonnage, or aircraft in which such goods may be found or which has been used in connection with such offence or violation, and any books or documents which may reasonably be believed to have a bearing on the case, may be seized by the proper officer. (2) Whenever any goods, receptacle, package, vehicles, vessels or aircraft are seized under this Act, the proper officer shall forthwith give notice in writing of such seizure and the grounds thereof to the owner of such goods, vehicles, vessels or aircraft, if known, either by delivering such notice to him personally or by post at his place of abode, if known: Provided that such notice shall not be required to be given where such seizure is made on the person or in the presence of the offender or the owner or his agent or, in the case of a vessel or an aircraft, in the presence of the master or pilot thereof, as the case may be.

any person whom he may reasonably suspect to have committed an offence against this Act. to any animal. and to any article used to conceal the same. may forthwith be sold and the proceeds of the sale held to abide the result of any prosecution or claim. or abetting the commission of. the senior officer of sales tax may. an offence against this Act. Powers of arrest 42. or employing or aiding any person to commit. any vehicle shall apply also to all equipment thereof. Release of vehicle. vessel or aircraft under bond 41.064e (A1183). vessel or aircraft has been seized under this Act. vessel or aircraft shall be surrendered to him upon demand. any person whom he may reasonably suspect to have in his possession any goods liable to seizure under this Act. or any animals seized under the provisions of this section. (b) (c) (4) Any goods of a perishable nature.fm Page 44 Friday. equipment and furnishings of such vessel or aircraft. (1) Any officer of sales tax may arrest without warrant— (a) any person found committing or attempting to commit. and if an animal drawn vehicle. temporarily return such vehicle. any vessel or aircraft shall apply also to the tackle. at his discretion. March 31. 2006 5:54 PM 44 Laws of Malaysia A CT 64 (3) The provisions of this section relating to the seizure of— (a) any goods shall apply to all the contents of any package or receptacle in which the same are found. (b) (c) and such officer of sales tax may search or cause to be searched any person so arrested: . When any vehicle. by which the same is drawn. vessel or aircraft to its owner upon security being furnished to the satisfaction of the senior officer of sales tax that the vehicle.

as the proper officer may require. on his executing a bond with such surety or sureties. (5) Every person so arrested may be released from custody— (a) (b) (c) on his depositing such reasonable sum of money as the proper officer may require. (b) (c) (2) Every person arrested under this section shall be taken to a police station or detained in the custody of the proper officer. he may at any time thereafter be arrested and dealt with as if he had been arrested at the time of committing such offence. 2006 5:54 PM Sales Tax Provided that— (a) 45 any person who requests that his person be searched in the presence of a senior officer of sales tax shall not be searched except in the presence of and under the supervision of such officer. or after arrest makes his escape.064e (A1183). March 31. with such surety or sureties. (4) Any senior officer of sales tax may cause to be taken photographs and finger and thumb impressions of any person charged with an offence against this Act. or on his depositing such reasonable sum of money as the proper officer may require and his executing a bond. but such person may be detained until the arrival of such officer. (6) Any person who has been released from custody under subsection (5) may be arrested without warrant by any officer of sales tax— . the goods and baggage of any person who requests to be present when they are searched and so presents himself within a reasonable time shall not be searched except in his presence. (3) If any person liable to arrest under this Act is not arrested at the time of committing the offence for which he is so liable. no female shall be searched except by another female with strict regard to decency. as the proper officer may require.fm Page 45 Friday. or taken to any office or police station where such officer may be found.

or on being notified in writing by the surety of such person that such person is likely to breach any condition on or subject to which such person was released and that the surety wishes to be relieved of his obligation as surety. 2006 5:54 PM 46 (a) Laws of Malaysia A CT 64 if such officer has reasonable grounds for believing that any condition on or subject to which such person was released or otherwise admitted to bail has been or is likely to be breached. or contrary to subsection 17(2).064e (A1183). 13. 19. or 28. fails or refuses to give correct information or refuses to give any information which he is required to give relating to sales tax. Without prejudice to any other liability incurred under this Act. issues an invoice showing an amount which purports to be sales tax. contravenes subsection 63 A (2). in any way obstructs any proper officer in the discharge of his functions under this Act. 43. 22. fails or refuses to produce any book or document for the examination or retention by the proper officer in accordance with the requirements of this Act. March 31.fm Page 46 Friday. (d) (e) (ea) (f) (g) . 12A. pays a lesser amount of sales tax than is required by this Act. 18. 17A. etc. carries on business at any place or premises not specified in the licence issued under section 13. PART X CRIMINAL OFFENCES (b) Failure to comply with notice. any person who— (a) (b) (c) fails or refuses to comply with the requirements of section 12. 17.

(2) Where in any proceedings under this section it is proved that a false statement or false entry (whether by omission or otherwise) has been made in a return. claim or application made under this Act or any regulations made under this Act.064e (A1183). art or contrivance. whether verbally or in writing. or falsifies or authorizes the falsification of any book of accounts. that person shall be presumed. gives any false answer.fm Page 47 Friday. invoices or other records maintained by or on behalf of any person. (1) Any person who wilfully with intent to evade or to assist any other person to evade sales tax— (a) omits from a return made under this Act or any regulations made under this Act any information in relation to any matter affecting the amount of his or the other person’s chargeability to sales tax. (b) (c) (d) (e) shall be guilty of an offence against this Act and such person shall be liable to a fine not exceeding fifty thousand ringgit or to imprisonment for a term not exceeding three years or to both. or in any books of accounts. claim or application furnished under this Act or any regulations made under this Act by or on behalf of any person. Evasion of sales tax 43A. invoices or records. March 31. prepares. or makes use or authorizes the use of any fraud. false invoices or other false records. makes any false statement or entry in any return. until the contrary is . maintains or authorizes the preparation or maintenance of any false book of accounts. and such person shall be liable to imprisonment for a term not exceeding twelve months or to a fine not exceeding five thousand ringgit or to both. 2006 5:54 PM Sales Tax 47 shall be guilty of an offence against this Act. to any question or request for information asked or made in pursuance of this Act or any regulations made under this Act.

art or contrivance to evade sales tax includes a reference to a person who. March 31. incites or induces any other person to make or makes on behalf of another person an incorrect return.064e (A1183). a computer. or used in connection with. statement or declaration resulting in a short payment of sales tax by the person liable for its payment. assists.fm Page 48 Friday. damages. Abetting an offence 44. (4) For the purposes of subsection (3). 2006 5:54 PM 48 Laws of Malaysia A CT 64 proved. (b) . abets. or interfering with. introduces into or records or stores in a computer. erasing or altering other data stored in that computer. damaging. the purpose or effect of which is to evade sales tax. or (b) (c) otherwise uses a computer. or any regulations made under this Act. or the data stored in that computer. or authorizes the use of any fraud. erases or otherwise manipulates the data stored in. abets. (3) A reference in this section to a person who makes use of any fraud. account. interrupting or obstructing the lawful use of that computer. incites or induces any other person to commit an offence under section 43. “data” includes any computer program or part of a computer program being a program approved by the Director General for use under section 17 A or 18. art or contrivance. data for the purpose of— (i) (ii) destroying. without the authority of the Director General— (a) destroys. assists. Where any person— (a) aids. to have made that false statement or entry with intent to evade sales tax. by any means. or aids.

having regard to the nature of his functions in that capacity and to all the circumstances. a society. manager. any person who at the time of the commission of the offence was a director. 46. penalty or forfeiture for any act. . March 31. an association or other body of persons. omission. secretary or other similar officer or a partner of the company. (Deleted by Act A1110). neglect or default of any clerk. or servant in the course of his employment or by such agent when acting on behalf of such person or by the clerk or servant of such agent when acting in the course of his employment in such circumstances that had such act. neglect or default been committed by the agent his principal would have been liable under this section.064e (A1183). P ART XI PROVISIONS AS TO TRIALS AND PROCEEDINGS Sessions Court to have full jurisdiction 47. a firm. association or other body of persons or was purporting to act in such capacity shall be deemed to be guilty of that offence unless he proves that the offence was committed without his consent or connivance and that he exercised all such diligence to prevent the commission of the offence as he ought to have exercised. omission. Offences by corporate bodies 45. Notwithstanding the provisions of any written law to the contrary. neglect or default he shall be liable to the same punishment. (2) Where any person would be liable under this Act to any punishment. neglect or default was committed by such clerk. a Sessions Court shall have jurisdiction to try any offence under this Act and to impose punishment under this Act for any such offence. firm. servant or agent. omission. society. (1) Where an offence against this Act or any regulation made thereunder has been committed by a company.fm Page 49 Friday. penalty or forfeiture for every such act. omission. 2006 5:54 PM Sales Tax 49 such first-mentioned person shall be guilty of an offence against this Act and shall be liable to a fine not exceeding five thousand ringgit or to imprisonment for a term not exceeding twelve months or to both. or of the clerk or servant of such agent provided that such act.

at least ten days before the day fixed for the hearing of the summons. (3) In this section “analyst” means— (a) a person employed as a Chemist in the Department of Chemistry. (b) . a certificate of analysis under the hand of an analyst shall. (2) If it is necessary to test any goods seized under this Act. March 31. quantity and quality as those found in the similar packages or receptacles which have been opened.064e (A1183). be sufficient evidence of the facts stated therein. as the case may be. or as a Chemist or an Assistant Chemist at the Institute for Medical Research. (1) When any goods suspected of being taxable goods or otherwise liable to seizure have been seized. Department of Agriculture. (3) The court shall presume that the goods contained in the unopened packages or receptacles are of the same nature. be sufficient evidence of the facts stated therein unless the defendant requires that the analyst be called as a witness. Evidence of analysis may be given in writing 49. on production thereof by the defendant. it shall be sufficient to open and examine five per centum only of each description of the package or receptacle in which such goods are contained. 2006 5:54 PM 50 Laws of Malaysia A CT 64 Proportional examination of goods seized to be accepted by courts 48. on production thereof by the prosecutor. (1) In any prosecution under this Act. (2) A copy of the certificate referred to in subsection (1) shall be sent to the defendant or the prosecutor. and if it is not so sent the court may adjourn the hearing on such terms as it may think proper.fm Page 50 Friday. unless the prosecutor requires that the analyst be called as a witness. in which case he shall give notice thereof to the prosecutor not less than ten days before the day on which the summons is returnable. it shall be sufficient to test only a sample not exceeding five per centum in volume or weight of the goods examined under subsection (1). and in like manner a certificate of analysis under the hand of an analyst shall. the Senior Chemist.

without enquiring into the manner or form of making any seizure. Manner of seizure not to be enquired into on trial before court or on appeal to High Court 51. or a Geologist in the Geological Survey Department. he shall be called at the expense of the defendant unless the court otherwise directs. and the burden of proving the incorrectness of any particulars stated in such certificate shall be on the person denying the same. to be an analyst or analysts for the purposes of this section. and any other person or class of persons who is or are declared by the Minister charged with responsibility for chemistry. except . March 31. (4) If an analyst is called by the defendant as provided by subsection (1) of this section. 2006 5:54 PM Sales Tax (c) (d) 51 a person employed as a Chemist. Where in any prosecution under this Act it is relevant to ascertain particulars as to the registration or licensing of any vessel or conveyance registered or licensed in any port or place in Malaysia or in Singapore. relating to the seizure of goods subject to forfeiture under this Act.fm Page 51 Friday. Proof as to registration or licensing of vessels and conveyances in Malaysia or Singapore 50. the court shall proceed to such trial or hear such appeal on the merits of the case only. the certificate of the proper officer as to such alcoholic content shall be accepted as if the proper officer were an analyst and in any such case subsections (1) and (4) of this section shall apply in the same manner and to the same extent as if the proper officer were an analyst. by notification in the Gazette. a certificate purporting to be signed by the officer responsible under any written law for the time being in force in Malaysia or any part thereof or in Singapore for such registration or licensing shall be prima facie evidence as to all particulars concerning such registration or licensing contained therein. (5) If in any trial or proceedings under this Act it is necessary to determine the alcoholic content of any liquor.064e (A1183). On any trial before any court and in any proceedings on appeal in the High Court.

or the substance of the information received from him. after full enquiry into the case. no witness in any civil or criminal proceedings under this Act shall be obliged or permitted to disclose the name or address of an informer. believes. the court. March 31. (3) If on trial for any offence under this Act. (2) Subject to subsection (3). it shall be lawful for the court to require the production of the original complaint. (2) Any person who fails to comply with subsection (1) shall be guilty of an offence against this Act and shall be liable to a fine not exceeding ten thousand ringgit or to imprisonment for a term not exceeding five years or to both. that the informer wilfully made in his complaint a material statement which he knew to be false or did not believe to be true. or if in any other proceeding the court is of opinion that justice cannot fully be done between the parties thereto without the discovery of the informer. . and permit enquiry and require full disclosure concerning the informer. if in writing. (1) Except as hereinafter provided. (1) Except as provided under section 52.064e (A1183). if any books. Obligation of secrecy 51A. contain any entry in which any informer is named or described or which might lead to his discovery. the name and address of an informer and the substance of the information received from an informer shall be kept secret and shall not be disclosed by any proper officer or any person who in the ordinary course of his duties comes into possession of or has control of or access to such information to any person except the designated officer of sales tax authorized by the Director General. or state any matter which might lead to his discovery. which are produced in evidence or liable to inspection in any civil or criminal proceeding under this Act.fm Page 52 Friday. documents or papers. Protection of informers from discovery 52. but only to the extent necessary to protect the informer from discovery. 2006 5:54 PM 52 Laws of Malaysia A CT 64 insofar as the manner and form of seizure may be evidence of such merits. the court shall cause all such passages to be concealed from view or to be obliterated.

give written notice to a senior officer of sales tax that he claims the same. (1) All goods liable to seizure under the provisions of this Act shall be liable to forfeiture. 2006 5:54 PM Sales Tax Goods liable to seizure liable to forfeiture 53 53. conveyances. or were used in the commission of. (1) Where no prosecution is initiated with regard to any goods seized under this Act. March 31. notwithstanding that no person may have been convicted of such offence.fm Page 53 Friday. (1) An order for the forfeiture or for the release of anything liable to forfeiture under the provisions of this Act shall be made by the court before which a prosecution with regard thereto has been held. (2) Any person asserting that he is the owner of such goods and that they are not liable to forfeiture may personally.064e (A1183). (3) All things forfeited shall be delivered to the Director General and shall be disposed of in accordance with his directions. the offence. Goods seized in respect of which there is no prosecution deemed to be forfeited if not claimed within one month 55. 58 and 60 the word “goods” shall be deemed to include receptacles. or by his agent authorized in writing in that behalf. vessels and aircraft. (2) For the purpose of this section and of sections 54. 56. Court to order disposal of goods seized 54. (2) An order for the forfeiture of goods shall be made if it is proved to the satisfaction of the court that an offence against this Act has been committed and that the goods were the subject matter of. (3) On receipt of such notice the senior officer of sales tax shall refer the claim to the Director General who may direct that such goods be released or may direct such senior officer of sales . 55. such goods shall be deemed to be forfeited at the expiration of one calender month from the date of seizures unless claim thereto is made before that date in the manner hereinafter set forth.

2006 5:54 PM 54 Laws of Malaysia A CT 64 tax.064e (A1183). . which is prescribed to be a compoundable offence. before the expiration of one calendar month from the date of the forfeiture of such goods. Minister may order return of goods seized 56. due service of such summons being proved. the Minister may order any goods seized under this Act. (1) The owner or any person having a beneficial interest in any goods seized may. make application to the Minister for the return of such goods. as the case may be.fm Page 54 Friday. of such offence shall order the same to be forfeited. whether forfeited or not. by accepting from the person reasonably suspected of having *NOTE—Previously “one thousand ringgit” – see Sales Tax (Amendment) Act 1999 [Act A1058]. to be delivered to the owner or other person entitled thereto. by information in the prescribed form. (2) Subsequent to any application made in accordance with subsection (1). the Sessions Court Judge shall proceed to the examination of the matter and on proof that an offence against this Act has been committed and that such goods were the subject matter. Compounding of offences *57. (1) Any senior officer of sales tax may compound any offence. or were used in the commission. and upon their appearance or default to appear. to refer the matter to the Sessions Court Judge for his decision. (4) The Sessions Court Judge shall issue a summons requiring the person asserting that he is the owner of the goods and the person from whom they were seized to appear before him. (5) In any proceedings under subsection (4) of this section. section 58 shall apply to the person asserting that he is the owner of the goods and to the person from whom they were seized as if such owner or person had been the defendant in a prosecution under this Act. upon such terms and conditions as he may deem fit. March 31. or may in the absence of such proof order their release. or from the date on which such goods shall be deemed to be forfeited.

the court before which that person is found guilty shall order that person to pay to the Director General the amount of sales tax due and payable. any dispute arises whether sales tax has been paid in respect of such goods or whether anything is exempt from sales tax. Court order 59A. (2) On payment of such sum of money the person reasonably suspected of having committed an offence. and any goods seized shall be released and no further proceedings shall be taken against such person or goods.fm Page 55 Friday. Conviction under other law 59. 2006 5:54 PM Sales Tax 55 committed such offence a sum of money not exceeding five thousand ringgit. No person shall in any proceedings before any court in respect of the seizure of any goods seized in exercise or the . No costs or damages arising from seizure to be recoverable unless seizure without reasonable or probable cause 60. then and in every such case the burden of proof thereof shall lie on the defendant in such prosecution. Burden of proof 58. or any penalty payable under this Act. if any.064e (A1183). Where any person is found guilty of an offence under section 43 or 43A . If in any prosecution in respect of any goods seized for nonpayment of sales tax or for any cause of forfeiture or for the recovery of any penalty or penalties under this Act. if in custody. conviction and punishment of any person according to the provisions of any other written law for the time being in force in Malaysia or in any part thereof: Provided that no person shall be punished more than once for the same offence. as certified by the Director General and such sales tax or penalty shall be recoverable in the same manner as a fine as provided under section 283 of the Criminal Procedure Code [Act 593]. Nothing contained in this Act shall prevent the prosecution. shall be discharged. March 31.

the remission at the discretion of the Director General of small amounts of sales tax. March 31.fm Page 56 Friday. 2006 5:54 PM 56 Laws of Malaysia A CT 64 purported exercise of any power conferred under this Act. all matters relating to bad debts for the purposes of this Act. all matters in regard to credit notes. P ART XII REGULATIONS Regulations 61. the place at which the sales tax is to be paid and collected. The Minister may make regulations to prescribe and regulate— (a) (b) (ba) (bb) (c) (d) (da) (db) (e) (f) the issue of licences. Protection of public officer 60A. the forms to be used under and for purposes connected with this Act. anything required or permitted in this Act to be prescribed or regulated. the determination of value for the purposes of subsection 7(1). be entitled to the costs of such proceedings or to any damages or other relief other than an order for the return of such goods or the payment of their value unless such seizure was made without reasonable or probable cause. Nothing done by a public officer in the course of his duties shall be deemed to be an offence under this Act. . and generally to give effect to the provisions of this Act.064e (A1183). the production of invoices by computer.

(1) Every notice. direction or other document required by this Act to be served on any person may be served— (a) (b) personally upon that person. to its last known address. Transaction of business on behalf of taxable person 63A. March 31. an association or other body of persons— (i) (ii) (iii) (b) to its registered office. to his last known address. (1) Subject to section 63. etc.064e (A1183). The clerks or servants of any person may transact business generally with any proper officer on behalf of such person: Provided that an officer may refuse to transact business with such clerk or servant unless such person identifies such clerk or servant to such officer as empowered to transact. . no person shall transact any business in relation to this Act on behalf of any taxable person. direction or other document was addressed— (a) in the case of a company. 62. a society.fm Page 57 Friday. and in the case of an individual. (2) A notice. or by sending it to that person by registered post. 2006 5:54 PM Sales Tax P ART XIII MISCELLANEOUS 57 Service of notices. or to any person authorized by it to accept service of process. a firm. except on matters with regard to— (a) refund. direction or other document sent by registered post to a person shall be deemed to have been served on that person at the time at which it would have been delivered to that person in the ordinary course of the post if such notice. Clerks and servants may transact business 63.

The Director General may require a licensee to submit annually an audit certificate. in relation to the books and records required to be kept by the licensee under the provisions of this Act in respect of the licensee’s production and sale of taxable goods manufactured by him. and where any prescribed form is required to be submitted for the purposes of the matters being transacted. (2) The person who transacts business on any of the matters stated in subsection (1) on behalf of a taxable person shall— (a) (b) produce a letter of authorization from the taxable person whom he represents.064e (A1183). submit the form that has been signed by the taxable person. at his discretion. 2006 5:54 PM 58 (b) (c) (d) remission. and subject to such conditions as he may deem fit to impose. Where any forms have been prescribed under section 61 no person shall. Rewards 65. signed by a public accountant not in the employment of the licensee. Laws of Malaysia A CT 64 exemption. for the purposes of this Act.fm Page 58 Friday. Licensee to furnish audit certificate 64. except where otherwise allowed by a senior officer of customs. use any form which is not printed or issued by authority of the Director General: Provided that the Director General may. permit any person to use forms which are not so printed or issued as . The Director General may order such rewards as he may deem fit to be paid to any officer or other person for services rendered in connection with the detection of any offences against this Act. or any other matters as approved by the Director General. Forms to be used 66. March 31.

or permit the use of any form submitted through an electronic data interchange.fm Page 59 Friday. (1) Where after the passing of this Act an effective resolution is passed or an order is made for the winding-up of a company which is a licensed manufacturer or importer the liquidator of the company shall give notice thereof to the Director General within fourteen days thereafter.064e (A1183). appeal to the Minister. appeal to the court. or in other cases and matters. and shall pay such sales tax. Power of Director General to charge fees 67. whose decision shall be final and not be subject to review in any court. . 2006 5:54 PM Sales Tax 59 aforesaid. Liquidator of company to give notice of winding-up. March 31. and shall before disposing of any of the assets of the Company set aside such sum out of the assets as appears to the Director General to be sufficient to provide for any sales tax that is or will thereafter become payable in respect of the company. (2) Any person aggrieved by a decision of the Director General may within thirty days after being notified of such decision— (a) (b) in cases relating to the refund of sales tax under section 31C. whose decision on such dispute shall. be final. and set aside tax 69. (1) Where any person disputes the decision of a proper officer acting in the course of duty under section 3 he may appeal therefrom to the Director General. Disputes and appeals 68. The Director General may charge such fee as he may consider reasonable in respect of any act or service done or rendered by him or any officer and which is not required to be done or rendered under this Act and for which no fee is prescribed by any written law. subject to subsection (2).

(2A ) Any liquidator who fails to comply with subsection (1) shall be guilty of an offence against this Act and shall be liable to a fine not exceeding ten thousand ringgit. (1) Where a receiver is appointed of the property of a licensed manufacturer or importer the receiver shall give notice thereof to the Director General within fourteen days thereafter. and shall pay such sales tax. subject to a right of contribution between themselves as in cases of contract. (3) Where two or more persons are appointed receivers the obligations and liabilities attaching to a receiver under this section shall attach to all such persons jointly and severally. and shall before disposing of any of the assets of the licensed manufacturer or importer set aside such sum out of the assets as appears to the Director General to be sufficient to provide for any sales tax that is or will thereafter become payable in respect of the goods that have been sold or manufactured by the licensed manufacturer or importer before the appointment of the receiver. March 31. . (3) Where two or more persons are appointed liquidators or are required by law to carry out the winding-up of any such company the obligations and liabilities attaching to a liquidator under this section shall attach to all such persons jointly and severally. Appointment of receiver to be notified to the Director General 70.fm Page 60 Friday. 2006 5:54 PM 60 Laws of Malaysia A CT 64 (2) A liquidator of any such company who fails to give notice to the Director General within the time specified in subsection (1) or fails to provide for payment of the sales tax as required by that subsection shall be personally liable for any sales tax that is or becomes payable as aforesaid. (2 A ) Any receiver who fails to comply with subsection (1) shall be guilty of an offence against this Act and shall be liable to a fine not exceeding ten thousand ringgit.064e (A1183). (2) A person appointed as receiver who fails to give notice to the Director General within the time specified in subsection (1) or fails to provide for payment of the sales tax as required by that subsection shall be personally liable for any sales tax that is or becomes payable as aforesaid.

or transported to or from Labuan. from or to the principal customs area 73. March 31. Langkawi and Tioman. Sales tax on goods imported into or exported from Labuan.fm Page 61 Friday. Keraman. “principal customs area” means Malaysia exclusive of Labuan. Papan and Daat.064e (A1183). Rusukan Kecil. and in the application of section 19 the term “taxable period” shall mean such accounting period. Notwithstanding anything to the contrary contained in this Act— (a) no sales tax shall be payable upon any taxable goods imported into Labuan or transported to Labuan from the principal customs area other than any taxable goods which the Minister may from time to time declare by order published in the Gazette. Taxable period other than two calendar months 71. PART XIV SPECIAL PROVISIONS DEALING WITH LABUAN Interpretation 72. 2006 5:54 PM Sales Tax 61 subject to a right of contribution between themselves as in cases of contract. Rusukan Besar. Burong. (b) . and the last day of that accounting period shall be deemed to be the end of a taxable period. For the purpose of this Act returns may be accepted by the proper officer for any taxable period not being a calendar month. In this Part. unless the context otherwise requires— “Labuan” means the Island of Labuan and its dependent islands viz. sales tax shall be payable upon all taxable goods transported to the principal customs area from Labuan to all intents as if such transportation to the principal customs area were importation into Malaysia.

while in Labuan. Transportation of goods to or from Labuan from or to the principal customs area 75. with such modifications and adaptations as may be necessary.fm Page 62 Friday. Taxable goods to be deemed non-taxable while in Labuan 77. the provisions of this Act shall. the principal customs area from or to a place outside Malaysia. apply as if such goods were imported into. exported from. The person in charge of any vessel or aircraft on which goods are transported from Labuan to the principal customs area shall make a declaration substantially in the form as prescribed under the Customs Act 1967 or under any other laws in force for the time being giving particulars of the goods transported in such vessel or aircraft. shall. Goods manufactured in Labuan deemed to be goods manufactured outside Malaysia 74. Where goods are transported— (a) (b) from Labuan to the principal customs area. Declaration of goods transported from Labuan to the principal customs area 76. Part IX shall apply to goods transported to or from Labuan from or to the principal customs area and to persons and vessels and aircraft transporting such goods as if Labuan were a place outside Malaysia. March 31. be deemed to be non-taxable and the provisions of this Act shall be construed accordingly: .064e (A1183). 2006 5:54 PM 62 (c) Laws of Malaysia A CT 64 the sale value of goods liable to sales tax in accordance with paragraph (b) shall be determined in accordance with subsection 7(2). Any taxable goods. or from the principal customs area to Labuan. and without prejudice to the above generality. For the purpose of this Act goods manufactured in Labuan are deemed to be goods manufactured outside Malaysia. or as the case may be.

In making regulations under section 61 of the Act. as the case may be. PART XVI 81.fm Page 63 Friday. Collection of taxes in Labuan 78. for the limitation or restriction of vessels and aircraft which may be used to transport such goods. the Minister may provide— (a) for the collection in Labuan of sales tax payable in respect of goods transported or about to be transported from or to Labuan to or from the principal customs area. (Deleted by Act 329). and for the licensing or control of persons or vessels or aircraft transporting such goods. unless the context otherwise requires— . In this Part. P ART XV 80. 2006 5:54 PM Sales Tax 63 Provided that the foregoing shall not apply in respect of any goods declared by the Minister to be taxable on importation into Labuan. (Deleted by Act 329).064e (A1183). (b) (c) Application of section 29 to goods transported to Labuan 79. March 31. Section 29 shall apply to goods (other than any goods declared by the Minister to be taxable on importation into Labuan) transported from the principal customs area to Labuan as if such goods had been exported or re-exported. 82. (Deleted by Act 293). PART XVII SPECIAL PROVISIONS DEALING WITH LANGKAWI Interpretation 83.

the provisions of this Act shall. apply as if such goods were imported into. or as the case may be. with such modifications and adaptations as may be necessary. Notwithstanding anything to the contrary contained in this Act. Langkawi and Tioman. no sales tax shall be payable upon any taxable goods imported into Langkawi or transported to Langkawi from the principal customs area other than such taxable goods. or from the principal customs area to Langkawi. exported from. which the Minister may from time to time declare by order published in the Gazette. Goods manufactured in Langkawi to be goods manufactured outside Malaysia 85. “principal customs area” means Malaysia exclusive of Labuan. or transported to or from Langkawi. Sales tax on goods imported into or exported from Langkawi. from or to the principal customs area 84. For the purpose of this Act goods manufactured in Langkawi are deemed to be goods manufactured outside Malaysia. Transportation of goods to or from Langkawi from or to the principal customs area 86.064e (A1183). and without prejudice to the above generality. the principal customs area from or to a place outside Malaysia. March 31. . Part IX shall apply to goods transported to or from Langkawi from or to the principal customs area and to persons and vessels and aircraft transporting such goods as if Langkawi were a place outside Malaysia.fm Page 64 Friday. 2006 5:54 PM 64 Laws of Malaysia A CT 64 “Langkawi” means Langkawi Island and all adjacent islands lying nearer to Langkawi Island than to the mainland. Where goods are transported— (a) (b) from Langkawi to the principal customs area.

the Minister may provide— (a) for the collection in Langkawi of sales tax payable in respect of goods transported or about to be transported from or to Langkawi to or from the principal customs area. Any taxable goods. as the case may be. and for the licensing or control of persons or vessels or aircraft transporting such goods. for the limitation or restriction of vessels and aircraft which may be used to transport such goods. In making regulations under section 61 of the Act. Taxable goods to be deemed non-taxable while in Langkawi 88. Section 29 shall apply to goods (other than any goods declared by the Minister to be taxable on importation into Langkawi) transported from the principal customs area to Langkawi as if such goods had been exported or re-exported. Collection of taxes in Langkawi 89.064e (A1183).fm Page 65 Friday. (b) (c) Application of section 29 to goods transported to Langkawi 90. 2006 5:54 PM Sales Tax 65 Declaration of goods transported from Langkawi to the principal customs area 87. be deemed to be non-taxable and the provisions of this Act shall be construed accordingly: Provided that the foregoing shall not apply in respect of any goods declared by the Minister to be taxable on importation into Langkawi. . The person in charge of any vessel or aircraft on which goods are transported from Langkawi to the principal customs area shall make a declaration substantially in the form as prescribed under the Customs Act 1967 or under any other laws in force for the time being giving particulars of the goods transported in such vessel or aircraft. shall while in Langkawi. March 31.

apply as if such goods were imported into. . unless the context otherwise requires— “Tioman” means the Island of Tioman and the islands of Soyak. Part IX shall apply to goods transported to or from Tioman from or to the principal customs area and to persons and vehicles. Labas. Transportation of goods from or to Tioman to or from the principal customs area 90D. Notwithstanding anything to the contrary contained in this Act. March 31. In this Part. “principal customs area” means Malaysia exclusive of Labuan. Rengis. or from the principal customs area to Tioman. with such modifications and adaptations as may be necessary. Goods manufactured in Tioman to be deemed goods manufactured outside Malaysia 90C. Where goods are transported— (a) (b) from Tioman to the principal customs area. which the Minister may from time to time declare by order published in the Gazette. For the purpose of this Act.064e (A1183). the principal customs area from or to a place outside Malaysia. and without prejudice to the above generality. vessels and aircraft transporting such goods as if Tioman were a place outside Malaysia. Sales tax relating to Tioman 90B. Sepoi and Jahat. 2006 5:54 PM 66 Laws of Malaysia P ART XVIIA SPECIAL PROVISIONS DEALING WITH TIOMAN A CT 64 Interpretation 90A. Chebeh. or as the case may be. no sales tax shall be payable upon any taxable goods imported into Tioman or transported to Tioman from the principal customs area other than such taxable goods.fm Page 66 Friday. exported from. Tulai. the provisions of this Act shall. Langkawi and Tioman. goods manufactured in Tioman are deemed to be goods manufactured outside Malaysia. Tumok.

In making regulations under section 61 of the Act. and for the licensing or control of persons or vessels or aircraft transporting such goods. Any taxable goods. as the case may be. Collection of taxes in Tioman 90G. the Minister may provide— (a) for the collection in Tioman of sales tax payable in respect of goods transported or about to be transported from or to Tioman to or from the principal customs area. be deemed to be non-taxable and the provisions of this Act shall be construed accordingly: Provided that the foregoing shall not apply in respect of any goods declared by the Minister to be taxable on importation into Tioman. (b) (c) Application of section 29 to goods transported to Tioman 90H. March 31.064e (A1183). for the limitation or restriction of vessels and aircraft which may be used to transport such goods.fm Page 67 Friday. 2006 5:54 PM Sales Tax 67 Declaration of goods transported from Tioman to the principal customs area 90E. shall while in Tioman. The person in charge of any vessel or aircraft on which goods are transported from Tioman to the principal customs area shall make a declaration substantially in the form as prescribed under the Customs Act 1967 or under any other laws in force for the time being giving particulars of the goods transported in such vessel or aircraft. Section 29 shall apply to goods (other than any goods declared by the Minister to be taxable on importation into Tioman) transported from the principal customs area to Tioman as if such goods had been exported or re-exported. Taxable goods to be deemed non-taxable while in Tioman 90F. .

March 31.fm Page 68 Friday. . and (c) specify the conditions required to be complied with for the operation of the different due-and-payable periods of sales tax as well as different taxable periods. do any or all of the following: (a) specify a different period for sales tax to be due and payable in respect of petroleum. 2006 5:54 PM 68 Laws of Malaysia P ART XVIII SPECIAL PROVISIONS DEALING WITH PETROLEUM A CT 64 Certain provisions of the Act to apply 91. Delivery of petroleum subject to customs control before payment of sales tax 93. Varying the due-and-payable period and taxable period 92. For the purpose of petroleum. Langkawi and Tioman shall be treated as being part of Malaysia and Parts I to XVIII shall apply in respect of petroleum manufactured in or imported into or exported from or transported to or from Labuan. the Minister may by order. Langkawi or Tioman as if Parts XIV. Subject to sections 92 to 95. XVII and XVIIA had not been enacted. Section 29 shall not apply to petroleum. this Act shall apply to petroleum. (b) specify a different taxable period in respect of petroleum.064e (A1183). Notwithstanding section 25. No drawback 94. Parts XIV. any person may obtain delivery of imported taxable petroleum from the control of Customs whether or not any part of or all of the sales tax on such goods have been paid. Notwithstanding anything contrary contained in this Act. Labuan. XVII and XVII A not to have effect 95.

2) Act 1982 Finance Act 1983 Finance Act 1986 Finance (No. March 31.fm Page 69 Friday.(A)357/1980 Act 274 Act 293 Act 328 Act 329 Act 337 Act A782 Act 438 Act 451 Malaysian Currency (Ringgit) Act 1975 Subordinate Courts Act (Extention) Order 1980 Finance (No. 43 and 44).U. 14-12-1990 (sections 45. 2006 5:54 PM 69 LAWS OF MALAYSIA Act 64 SALES TAX ACT 1972 LIST OF AMENDMENTS Amending law Short title In force from Act A146 Act A195 Act A251 Act 24 Free Trade Zones (Amendment) Act 1972 Sales Tax (Amendment) Act 1973 Sales Tax (Amendment) Act 1974 Free Trade Zones Act 1971 06-10-1972 01-06-1973 14-06-1974 06-10-1972 (section 43 Second Schedule) 29-08-1975 01-06-1981 01-01-1983 21-10-1983 24-10-1986 01-01-1987 24-10-1987 31-08-1990 05-09-1991 01-01-1991 (sections 42. 46 and 47) Act 160 P.064e (A1183). 2) Act 1986 Finance Act 1987 Sales Tax (Amendment) Act 1990 Free Zones Act 1990 Finance Act 1991 .

March 31. 2) Act 1999 Sales Tax (Amendment) Act 2001 Sales Tax (Amendment) Act 2002 Sales Tax (Amendment) (No.fm Page 70 Friday.064e (A1183). 2) Act 2002 04-03-1994 13-09-1996 25-10-1996 17-10-1997 01-01-2000 01-01-2000 06-07-2001 01-09-2002 01-01-2003 . 2006 5:54 PM 70 Amending law Laws of Malaysia Short title A CT 64 In force from Act A875 Act A961 Act 557 Act 578 Act A1058 Act A1070 Act A1110 Act A1163 Act A1183 Sales Tax (Amendment) Act 1994 Sales Tax (Amendment) Act 1996 Finance Act 1997 Finance Act 1998 Sales Tax (Amendment) Act 1999 Sales Tax (Amendment) (No.

fm Page 71 Friday. 2006 5:54 PM 71 LAWS OF MALAYSIA Act 64 SALES TAX ACT 1972 LIST OF SECTIONS AMENDED Section Amending authority In force from 1 2 Act A961 Act A251 Act 293 Act 451 Act A875 Act A961 Act A1058 Act A1070 Act A1110 Act A1163 13-09-1996 14-06-1974 21-10-1983 01-01-1991 04-03-1994 03-09-1996 01-01-2000 01-01-2000 06-07-2001 01-09-2002 06-10-1972 06-10-1972 (section 43 Second Schedule) 25-10-1996 01-06-1973 31-08-1990 01-06-1973 2A Act A146 Act 24 2B 3 Act 557 Act A195 Act A782 5 Act A195 .064e (A1183). March 31.

2006 5:54 PM 72 Section Laws of Malaysia Amending authority A CT 64 In force from Act A1058 7 Act A195 Act 328 Act A782 Act A1058 Act A1183 8 9 10 11 12 A 13 Act A782 Act 293 Act A195 Act 328 Act A1058 Act A195 Act 328 Act 337 13 A Act A251 Act A1058 14 Act 337 Act 578 15 16 Act 293 Act A195 Act A1070 17 Act A195 Act A782 01-01-2000 01-06-1973 24-10-1986 31-08-1990 01-01-2000 01-01-2003 31-08-1990 21-10-1983 01-06-1973 24-10-1986 01-01-2000 01-06-1973 24-10-1986 24-10-1987 14-06-1974 01-01-2000 24-10-1987 17-10-1997 21-10-1983 01-06-1973 01-01-2000 01-06-1973 31-08-1990 . March 31.064e (A1183).fm Page 72 Friday.

fm Page 73 Friday. March 31.064e (A1183). 2006 5:54 PM Sales Tax Section Amending authority In force from 73 Act A1070 17 A 19 22 Act A1058 Act 451 Act A251 Act 293 23 Act 293 Act A1058 Act A1110 24 Act 328 Act A1058 Act A1183 26 Act A251 Act A1058 Act A1110 27 A 28 29 30 Act A1058 Act A1058 Act A251 Act 293 Act 328 Act A782 Act A1058 31 Act A251 Act 274 01-01-2000 01-01-2000 01-01-1991 14-06-1974 21-10-1983 21-10-1983 01-01-2000 06-07-2001 24-10-1986 01-01-2000 01-01-2003 14-06-1974 01-01-2000 06-07-2001 01-01-2000 01-01-2000 14-06-1974 21-10-1983 24-10-1986 31-08-1990 01-01-2000 14-06-1974 01-01-1983 .

064e (A1183).fm Page 74 Friday. 2006 5:54 PM 74 Section Laws of Malaysia Amending authority A CT 64 In force from 31 A 31 B 31 C 31 D 32 Act 274 Act A1058 Act A1183 Act A1183 Act A782 Act A1058 01-01-1983 01-01-2000 01-01-2003 01-01-2003 31-08-1990 01-01-2000 01-06-1973 01-01-2000 06-07-2001 06-07-2001 06-07-2001 14-06-1974 04-03-1994 01-01-2000 01-01-2000 14-06-1974 01-01-2000 06-07-2001 06-07-2001 06-07-2001 06-07-2001 01-06-1973 01-06-1973 33 36 Act A195 Act A1058 Act A1110 39 A 42 43 Act A1110 Act A1110 Act A251 Act A875 Act A1058 43 A 44 Act A1058 Act A251 Act A1058 45 46 48 51 A 53 55 Act A1110 Act A1110 Act A1110 Act A1110 Act A195 Act A195 . March 31.

2006 5:54 PM Sales Tax Section Amending authority In force from 75 57 59 A 60 A 61 Act A1058 Act A1058 Act 293 Act A1058 Act A1183 01-01-2000 01-01-2000 21-10-1983 01-01-2000 01-01-2003 01-01-2000 06-07-2001 01-01-2000 01-01-2000 04-03-1994 04-03-1994 01-01-2003 31-08-1990 01-01-2000 01-01-2000 31-08-1990 01-01-2000 01-01-2000 01-01-1991 01-01-1987 01-09-2002 14-12-1990 01-01-2003 62 Act A1058 Act A1110 63 63 A 64 66 68 69 Act A1058 Act A1058 Act A875 Act A875 Act A1183 Act A782 Act A1058 Act A1070 70 Act A782 Act A1058 Act A1070 71 72 Act 451 Act 329 Act A1163 73 Act 451 Act A1183 .064e (A1183). March 31.fm Page 75 Friday.

March 31.fm Page 76 Friday. 2006 5:54 PM 76 Section Laws of Malaysia Amending authority A CT 64 In force from 76 77 79 P ART XV 81 82 83 Act A251 Act 451 Act 451 Act 293 Act 329 Act 329 Act 329 Act A1163 14-06-1974 14-12-1990 14-12-1990 21-10-1983 01-01-1987 01-01-1987 01-01-1987 01-09-2002 01-01-1987 01-01-1987 01-01-1987 01-01-1987 01-01-1987 01-01-1987 01-01-1987 01-09-2002 01-09-2002 01-09-2002 01-09-2002 01-09-2002 01-09-2002 01-09-2002 01-09-2002 84 85 86 87 88 89 90 P ART XVII A 90 A 90 B 90 C 90 D 90 E 90 F 90 G Act 329 Act 329 Act 329 Act 329 Act 329 Act 329 Act 329 Act A1163 Act A1163 Act A1163 Act A1163 Act A1163 Act A1163 Act A1163 Act A1163 .064e (A1183).

064e (A1183).fm Page 77 Friday. 2006 5:54 PM Sales Tax Section Amending authority In force from 77 90 H PART XVIII 91 92 93 94 95 Act A1163 Act A1070 Act A1070 Act A1070 Act A1070 Act A1070 Act A1070 Act A1163 01-09-2002 01-01-2000 01-01-2000 01-01-2000 01-01-2000 01-01-2000 01-01-2000 01-09-2002 . March 31.

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