Table 1: Malaysia Palm Oil Industry Taxation – Effecive 1 January 2020.

Corporate 24% of corporate profit

Tax

MPOB Cess Both CPO and CPKO are subject to RM14/tonne cess, where RM9 goes to
the Malaysian Palm Oil Board (MPOB) for its upkeep and R&D purposes, RM2
for Palm Oil Promotion Fund, RM2 for the Crude Palm Oil Price Stabilisation
Scheme and RM1 for Green Initiatives Fund which focused on tree
planting and wildlife conservation.

Windfall Windfall Profit Levy is collected by the Royal Malaysian Customs Department
Profit Levy from all producers of fresh fruit bunches (FFB), with an oil palm planted with
more than 100 acres (40.46 hectares).
Smallholders and oil palm settlers, with planted area of less than 100 acres
(40.46 hectares) are exempted.

FFB producers in Peninsular Malaysia:

 3% of monthly total production of FFB in tonnes from the difference
between MPOB Malaysia Monthly Average Price of CPO and CPO
'threshold' price (RM2,500/tonne for Peninsular Malaysia)
 Windfall Profit Levy Calculation:
= 3% x Monthly FFB Production x (MPOB Malaysia Monthly Average CPO
Price - RM2,500/tonne)

FFB producers in Sabah dan Sarawak:

 1.5% of monthly total production of FFB in tonnes from the difference
between MPOB Malaysia Monthly Average Price of CPO and CPO
'threshold' price (RM3,000/tonne for Sabah and Sarawak)
 Windfall Profit Levy Calculation:
= 1.5% x Monthly FFB Production x (MPOB Malaysia Monthly Average
CPO Price - RM3,000/tonne)

Sabah sales 7.5% for CPO price above RM1,000/tonne.

tax

Sarawak CPO:
sales tax
 0% for CPO price below RM1,000/tonne
 2.5% for CPO price above RM1,000/tonne and below RM1,500/tonne
 5.0% for CPO price above RM1,500/tonne
 CPKO:
 0% for CPKO price below RM1,000/tonne
 2.5% for CPKO price above RM1,000/tonne and below RM1,500/tonne
 5.0% for CPKO price above RM1,500/tonne

Export duty CPO Market Price Export Duty, effective 1st January 2020
on CPO (FOB RM/Tonne) (%)

< RM2,250.00 NIL

RM2,250 – RM2,400 3
RM2,401 – RM2,550 4.5
RM2,551 – RM2,700 5.0
RM2,701 – RM2,850 5.5
RM2,851 – RM3,000 6.0
RM3,001 – RM3,150 6.5
RM3,151 – RM3,300 7.0
RM3,301 – RM3,450 7.5
> RM3,450.00 8.0