Tax Code

Tax Code and SST-02 Mapping

The images below show SST tax code structures and mapping to SST-02:

Part A:

Part B1:

Part B2:

Part C:

Part D:

Part E:

Part F:

Part G:

Sales Tax Code

1. Standard

   No	Tax Code	Description	Application	Tax Rate	SST-02
   01	ST	Sales Tax 10% charged to the taxable goods based on accrual/billing basis	Manufacture/processed products sold to local company at tax rate 10%	10%	B1_8, B2_11B
   02	ST5	Sales Tax 5% charged to the taxable goods based on accrual/billing basis	Manufacture/processed products sold to local company at tax rate 5%	5%	B1_8, B2_11A

2. Deemed Supply (Own Used/Disposed)

   No	Tax Code	Description	Application	Tax Rate	SST-02
   01	SU	Goods Own Used/Disposed deemed taxable and charged at 10% based on accrual/billing basis	Products produced and self use it are deemed taxable at tax rate 10%	10%	B1_9, B2_11B
   02	SU5	Goods Own Used/Disposed deemed taxable and charged at 5% based on accrual/billing basis	Products produced and self use it are deemed taxable at tax rate 5%	5%	B1_9, B2_11A

3. Sales - Exempted

   No	Tax Code	Description	Application	Tax Rate	SST-02
   01	STE	Sales Tax Exempted on goods as prescribed in the Sales Tax (Goods Exempted From Tax) Order 2018	Specific manufacture products which are exempted from tax, eg. rice flour	Exempted
   02	SE	Sales Tax Exempted to Export, Special Area (SA)	Manufacture/processed products export to oversea or special area at tax rate exempted, eg. Free Zone, LMW and Area (DA), eg. Langkawi, Tioman, Labuan	Exempted	D18_A
   03	SEA	Sales Tax Exempted-Sch A	Class of Person, eg. Government, Local Authority Dept, etc. Detail refer to Schedule A in Sales Tax (Person Exempted From Payment Of Tax) Order 2018	Exempted	D18_B1
   04	SEB	Sales Tax Exempted-Sch B	Manufacturer of specific non-taxable goods. e.g. control products, medical. Detail refer to Schedule B in Sales Tax (Person Exempted From Payment Of Tax) Order 2018	Exempted	D18_B2
   05	SEC1	Sales Tax Exempted-Sch C (Item 1)	Raw materials, components and packaging materials excluding PETROLEUM imported/purchased from a reg. manufacturer/licensed warehouse by any reg. manufacturer	Exempted	D18_B3 (i)
   06	SEC2	Sales Tax Exempted-Sch C (Item 2)	Raw materials, components and packaging materials imported/purchased from a reg. manufacturer/licensed warehouse by any reg. manufacturer of PETROLEUM products	Exempted	D18_B3 (i)
   07	SEC3	Sales Tax Exempted-Sch C (Item 3)	Raw materials, components and packaging materials excluding PETROLEUM imported/purchased from a reg. manufacturer by any agent on behalf of a reg. manufacturer	Exempted	D18_B3 (ii)
   08	SEC4	Sales Tax Exempted-Sch C (Item 4)	Raw materials, components and packaging materials imported/purchased from a reg. manufacturer by any agent on behalf of a reg. manufacturer of PETROLEUM products	Exempted	D18_B3 (ii)
   09	SEC5	Sales Tax Exempted-Sch C (Item 5)	Semi-finished taxable goods or finished taxable goods which are subsequently returned by a subcontractor to a reg. manufacturer after completion of subcontract work	Exempted	D18_B3 (iii)
   10	STE35(3)	Total value of Sales Exempted Under Subsection 35(3) and / or Section 61A Sales Tax Act 2018	Products produced can be exempted and approved by Minister under Subsection 35(s) and / or Section 61A Sales Tax Act 2016	Exempted	D18E

4. Bad Debt Relief

   No	Tax Code	Description	Application	Tax Rate	SST-02
   01	STBD	Sales Tax Bad Debt Relief at tax rate 10%. Claimable within 6 years from the taxable service date, subject to DG approval	A registered sales tax company can request a tax refund for the paid sales tax from customs if unable to recover the arrears from the customer.	10%	B2_13d
   02	STBD5	Sales Tax Bad Debt Relief at tax rate 5%. Claimable within 6 years from the taxable service date, subject to DG approval	A registered sales tax company can request a tax refund for the paid sales tax from customs if unable to recover the arrears from the customer.	5%	B2_13d

Service Tax Code

1. Standard

   No	Tax Code	Description	Application	Tax Rate	SST-02
   01	SV	Service Tax 6% / 8% charged to the taxable services based on payment basis	Service transaction charged at 6% / 8% follow the nature of business. Accounting as payment basis	6% / 8%	B1_10, B2_11C/D
   02	SVA	Service Tax 6% / 8% charged to the taxable service based on accrual/billing basis. It is used in IMSV tax code to report in SST-02A	Service transaction charged at 6% / 8% follow the nature of business. Accounting as Accrual/Billing basis	6% / 8%	B1_10, B2_11C/D

2. Deemed Supply (Own Used/Disposed)

   No	Tax Code	Description	Tax Rate	SST-02
   01	SUV	Service Own Used charged at 6% / 8% on accrual/billing basis	6% / 8%	B1_9, B2_11C/D

3. Service Exempted

   Applicable to same service provider under:

   1. Group G to Group G (all except Employment and Guards protection service provider).
   2. Group I to Group I (ie. advertising service provider).

   No	Tax Code	Description	Application	Tax Rate	SST-02
   01	SVE	Service Tax Exempted between same service providers in Group G (excluding item j and k) or in Group I item 8 only. Refer to Service Tax (Person Exempted From Payment of Tax) Order 2018	B2B Exemption	Exempted	D18C1
   02	SVGR	Service Tax Exempted related to Intra Group Relief	Group Relief	Exempted	D18C2
   03	SVOE	Service Tax Exempted - Others	Other exemptions besides B2B exemption and Group Relief (eg. Non-reviewable contracts are granted exempted for 1 year)	Exempted	D18C3

4. Imported Service

   1. For non-Service Tax Registered must declare using SST-02A.
   2. For Service Tax Registered must declare using SS-02.

   No	Tax Code	Description	Input Tax	Output Tax	SST-02	SST-02A (for imported service)
   01	IMSV	Imported Service Tax, any company in Malaysia who acquire the taxable service from company outside Malaysia. Non-SST & Sales Tax reg. must report in SST-02A. Service tax reg. remains report in SST-02	PSV (8%)	SVA (8%)	B1_10 B2_11C	B10a
   02	IMSVE	Imported Service Tax Exempted between same service providers in Group G (excluding item j and k) or in Group I item 8 only. Refer to Service Tax (Person Exempted From Payment of Tax) Order 2018	PSVE	SVE	D18C

5. Non-Taxable

   No	Tax Code	Description	Application	Tax Rate	SST-02
   01	SVZ	Non-taxable services refer to transactions not subject to service tax	eg. healthcare facility given to citizen, residential buildings, related public amenities, etc	Not Subject to Service Tax	D18D

6. Bad Debt Relief

   No	Tax Code	Description	Application	Tax Rate	SST-02
   01	SVBD	Service Tax Bad Debt Relief at tax rate 6%. Claimable within 6 years from the taxable service date, subject to DG approval	A registered service tax company can request a tax refund for the paid service tax from customs if unable to recover the arrears from the customer.	6% / 8%	B2_13D

Purchase Tax Code

1. Need Declare In SST-02

   No	Tax Code	Description	Application	Tax Rate	SST-02
   01	PEC1	Purchase Tax Exempted-Sch C (Item 1)	Raw materials, components and packaging materials excluding PETROLEUM imported/purchased from a reg. manufacturer/licensed warehouse by any reg. manufacturer	Exempted	E19
   02	PEC2	Purchase Tax Exempted-Sch C (Item 2)	Raw materials, components and packaging materials imported/purchased from a reg. manufacturer/licensed warehouse by any reg. manufacturer of PETROLEUM products	Exempted	E19
   03	PEC3	Purchase Tax Exempted-Sch C (Item 3)	Raw materials, components and packaging materials excluding PETROLEUM imported/purchased from a reg. manufacturer by any agent on behalf of a reg. manufacturer	Exempted	E20
   04	PEC4	Purchase Tax Exempted-Sch C (Item 4)	Raw materials, components and packaging materials imported/purchased from a reg. manufacturer by any agent on behalf of a reg. manufacturer of PETROLEUM products	Exempted	E20
   05	PEC5	Purchase Tax Exempted-Sch C (Item 5)	Semi-finished taxable goods or finished taxable goods which are subsequently returned by a subcontractor to a reg. manufacturer after completion of subcontract work	Exempted	E21
   06	DTR	Digital Tax refund granted under section 34(3)(b) Service Tax Act 2018 by the offetting method based on the actual amount paid	Local service registered person who has paid imported digital service tax to a Foreign Service Provider (FSP). It is allow to claim a refund granted under section 34(3)(b) Service Tax Act 2018.	8%	B2_13C

2. No Need Declare In SST-02

   No	Tax Code	Description	Application	Tax Rate	SST-02
   01	PST	Purchase Sales Tax 10%	Apply for purchase transactions involve Sales Tax rate at 10%. No claimable from Kastam.	10%
   02	PST5	Purchase Sales Tax 5%	Apply for purchase transactions involve Sales Tax rate at 5%. No claimable from Kastam.	5%
   03	PSV	Purchase Service Tax 6%,8%	Apply for service transactions involve Service Tax rate at 6% / 8%. No claimable from Kastam.	6% / 8%
   04	PSVE	Purchase Service Tax Exempted	Apply for service transactions which is under same service providers between Group G (excluding item j and k) or Group I (item 8 only) or in Group J.	Exempted

Tariff Code

• Tariff classification is a complex yet extremely important aspect of cross-border trading.
• Goods imported from or to Malaysia are classified by the Harmonized Tariff Schedule (HTS) or commonly referred to as HS Codes.
• The codes, created by World Customs Organization (WCO), categorize up to 5,000 commodity
• HS Codes are made of 6-digit numbers that are recognized internationally, though different countries can extend the numbers by two or four digits to define commodities at a more detailed level.
• Click this link here to search the tariff code list from Kastam system.

Quick Setup for Tariff Code

1. Create the tariff code applicable to your product at Maintain Tariff.

   

2. Pick a tariff code for an items at Maintain Stock Item.

   

3. For exemption certificate case (under Schedule A, B, C), a tariff and tax code (SEA, SEB, SEC1, SEC2, SEC3, SEC4, SEC5) should set in Maintain Customer and Maintain Supplier (Tariff code setting under Tax Tab).

   Maintain Customer

   Maintain Supplier