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Claiming Tax Deductions on Goods Imported from China

Posted LnCoadmin

Many business owners in Malaysia import goods from China but are unsure whether these expenses can be tax deductible.


 The good news is — with the correct import documents, these costs can be claimed as legitimate business expenses during tax filing.

Key Documents Required for Tax Deduction:

  • China Supplier Invoice
    The official invoice from the supplier showing details of goods, quantity, and total amount.
  • Payment Proof
    Evidence that payment has been made, such as bank transfer slips, remittance records, or official receipts.
  • K1 Form
    An official form issued by Malaysian Customs to verify that the goods have been legally imported.
  • Custom Receipt / Letter from Customs
    Proof of customs clearance or import tax payment, confirming the goods’ legal entry into Malaysia.

Why These Documents Matter？

These documents serve as supporting evidence recognized by LHDN (Inland Revenue Board of Malaysia) to validate the authenticity of your import transactions.


 Without them, your import costs may not qualify as deductible expenses, which could result in higher taxable income.

Professional Advice：

After every overseas purchase or import transaction:

  • Always request official invoices and payment proofs from your suppliers.
  • Keep all import-related forms and customs documents properly filed.
  • Consult your accountant or tax advisor to confirm that all required documents are in order.

With complete documentation, you can confidently claim your tax deductions — and reduce your company’s taxable expenses legally.

**Data updated on 17.10.2025