Non Taxable Goods and Profit

By law, all goods and services, unless otherwise stated, constitute taxable goods or taxable services. The legal negative list sets out which goods and services are categorized as non- taxable, as follows:

Non-taxable Goods

  1. mining or drilling products extracted directly from their sources, for example crude oil, natural gas, geothermal energy, sand and gravel, coal (before processing into coal briquettes), iron ore, tin ore, copper ore, gold ore, silver ore and bauxite ore;
  2. basic commodities, for example rice, salt, corn, sago and soy beans;
  3. food and drink served in hotels, restaurants and the like, either consumed in the vicinity or taken away, including food and drink delivered by caterers; and
  4. money, gold bars and securities.

Non-taxable Services

  1. medical health services;
  2. social services, for example orphanages and funeral  services;
  3. mail services using stamps;
  4. financial services;
  5. insurance services;
  6. religious services;
  7. educational services;
  8. art and entertainment services;
  9. broadcasting services which are not used for advertising;
  10. public transportation on land and water and international  air transport;
  11. manpower services;
  12. hotel services;
  13. public services provided by the government;
  14. parking area services;
  15. public telephone services using coins;
  16. remittance services by money orders; and
  17. food or catering services.


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