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	Tax Rate	SST-02
   01	ST	Sales Tax 10% charged to the taxable goods based on accrual/billing basis	10%	B1_8, B2_11B
   02	ST5	Sales Tax 5% charged to the taxable goods based on accrual/billing basis	5%	B1_8, B2_11A

2. Deemed Supply (Own Used/Disposed)

   No	Tax Code	Description	Tax Rate	SST-02
   01	SU	Goods Own Used/Disposed deemed taxable and charged at 10% based on accrual/billing basis	10%	B1_9, B2_11B
   02	SU5	Goods Own Used/Disposed deemed taxable and charged at 5% based on accrual/billing basis	5%	B1_9, B2_11A

3. Sales - Exempted

   No	Tax Code	Description	Tax Rate	SST-02
   01	STE	Sales Tax Exempted on goods as prescribed in the Sales Tax (Goods Exempted From Tax) Order 2018
   02	SE	Sales Tax Exempted to Export, Special Area (SA), e.g. Free Zone, LMW and Designated Area (DA), e.g. Langkawi, Tioman, Labuan		D18_A
   03	SEA	Sales Tax Exempted-Sch A (Class of Person), e.g. Government, Local Authority Dept. Detail refer to Schedule A in Sales Tax (Person Exempted From Payment Of Tax) Order 2018		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		D18_B2
   05	SEC1	Sales Tax Exempted-Sch C (Item 1) on raw materials, components and packaging materials excluding PETROLEUM imported/purchased from a reg. manufacturer/licensed warehouse by any reg. manufacturer		D18_B3 (i)
   06	SEC2	Sales Tax Exempted-Sch C (Item 2) on raw materials, components and packaging materials imported/purchased from a reg. manufacturer/licensed warehouse by any reg. manufacturer of PETROLEUM products		D18_B3 (i)
   07	SEC3	Sales Tax Exempted-Sch C (Item 3) on raw materials, components and packaging materials excluding PETROLEUM imported/purchased from a reg. manufacturer by any agent on behalf of a reg. manufacturer		D18_B3 (ii)
   08	SEC4	Sales Tax Exempted-Sch C (Item 4) on raw materials, components and packaging materials imported/purchased from a reg. manufacturer by any agent on behalf of a reg. manufacturer of PETROLEUM products		D18_B3 (ii)
   09	SEC5	Sales Tax Exempted-Sch C (Item 5) on semi-finished taxable goods or finished taxable goods which are subsequently returned by a subcontractor to a reg. manufacturer after completion of subcontract work		D18_B3 (iii)

4. Purchase - Exempted

   No	Tax Code	Description	Tax Rate	SST-02
   01	PEC1	Purchase Tax Exempted-Sch C (Item 1) on raw materials, components and packaging materials excluding PETROLEUM imported/purchased from a reg. manufacturer/licensed warehouse by any reg. manufacturer		E19
   02	PEC2	Purchase Tax Exempted-Sch C (Item 2) on raw materials, components and packaging materials imported/purchased from a reg. manufacturer/licensed warehouse by any reg. manufacturer of PETROLEUM products		E19
   03	PEC3	Purchase Tax Exempted-Sch C (Item 3) on raw materials, components and packaging materials excluding PETROLEUM imported/purchased from a reg. manufacturer by any agent on behalf of a reg. manufacturer		E20
   04	PEC4	Purchase Tax Exempted-Sch C (Item 4) on raw materials, components and packaging materials imported/purchased from a reg. manufacturer by any agent on behalf of a reg. manufacturer of PETROLEUM products		E20
   05	PEC5	Purchase Tax Exempted-Sch C (Item 5) on semi-finished taxable goods or finished taxable goods which are subsequently returned by a subcontractor to a reg. manufacturer after completion of subcontract work		E21

Service Tax Code

1. Standard

   No	Tax Code	Description	Tax Rate	SST-02
   01	SV	Service Tax 6% charged to the taxable services based on payment basis	6%	B1_10, B2_11C
   02	SVA	Service Tax 6% charged to the taxable service based on accrual/billing basis. It is used in IMSV tax code to report in SST-02A	6%	B1_10, B2_11C

2. Deemed Supply (Own Used/Disposed)

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

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	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		D18C

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 (6%)	SVA (6%)	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

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).