Malaysia purpose of payment guide


Sending a wire to Malaysia requires you to provide certain information, including the recipient's bank details and the purpose of payment code. The purpose of payment code is a five-digit code that indicates the reason for the transaction, such as trade in goods or services, investment, or personal remittance.

When choosing a purpose of payment code, make sure that it is accurate and appropriate for the transaction. Incorrect or inappropriate codes could result in delays or even rejection.

Purpose of payment code

Purpose codes are used to indicate the nature of the transaction being conducted and should be included in the payment details when initiating a wire transfer to or from Malaysia. The purpose code should be selected based on the nature of the transaction and should be consistent with the supporting documentation, such as invoices or contracts.

Code

Description

GOODS

For movable goods that change ownership, excluding financial leases.

If the goods transactions have been included in the monthly Inter company Account Report (IA Report) submitted to BNM, report as “17010” (Inter-company settlement for offsetting payables against receivables)

0

Food And live animals

1000

Beverages and tobacco

2000

Crude materials, inedible, except fuels

3000

Mineral fuels, lubricants, and related materials

4000

Animal and vegetable oils, fat and waxes

5000

Chemicals and related products, not classified elsewhere

6000

Manufactured goods

7000

Machinery, non-customised packaged software and transport equipment

7100

Power lines, pipelines and undersea communication cables

8000

Miscellaneous manufactured articles

9000

Commodities and transactions not classified elsewhere

9100

Refunds relating to goods transactions

9700

Non-monetary gold

16711

Merchanting trade In Malaysia

16712

Merchanting trade abroad

SERVICES

Manufacturing services

Covers charges for specific services including related to the primary product

10010

Goods for processing (manufacturing services)

Repair and maintenance services

12500

Repair and maintenance of aircraft, ships and other transport equipment

TRANSPORTATION SERVICES

Freight on goods

Covers payment for transportation of goods, including the loading on board and unloading of goods from carriers if contracts between the owner of goods and carriers required the service.

11110

Freight by air

11120

Freight by sea

11130

Freight by other modes of transportation

Passenger fare

Covers payment for international carriage of passengers and also other incidental expenses.

11210

Passenger fare by air

11220

Passenger fare by sea

11230

Passenger fare by other modes of transportation

Airport and port services

Covers payment for services related to stevedoring and haulage, storage and warehousing charges, harbor dues and fees, anchorage and berthing facilities, tug boat service, pilotage, and towage and airport landing facilities.

12110

Airport services

12120

Port services

12130

Other terminal facilities

12110

Airport services

TRAVEL SERVICES (EXCLUDE PASSENGER FARES)

Personal travel

Covers purchases and sales of travelers’ checks, foreign currencies, bank drafts, and telegraphic transfers for goods and services acquired for use by travelers during their visits to host countries. This is only for expenses incurred overseas while traveling.

13110

Goods and services purchase by travellers

13300

Travel for pilgrimage and religious observances

13400

Travel for medical treatment

13500

Education-related

Business and official travel

Covers purchases and sales of travelers’ checks, foreign currencies, bank drafts, and telegraphic transfers for goods and services acquired for use by travelers during their visits to host countries. this is only for expenses incurred overseas while traveling.

13210

Goods and services purchase through business and official travel

13220

Goods and services purchase by short term workers and construction services

16210

Construction and installation services in Malaysia

16220

Construction and installation services abroad

INSURANCE/TAKAFUL AND PENSION SERVICES

Covers charges for premiums and settlement of claims for services relating to freight insurance/takaful, direct insurance/takaful (life and non-life), and reinsurance/retakaful

16311

Premium paid/received on high risk insurance/takaful relating to fire, marine, aviation, etc.

16312

Premiums paid/received on other general insurance/takaful

16313

Premium paid/received on life insurance/takaful

16314

Premiums paid/received on reinsurance/retakaful

16315

Premium paid/received on insurance/takaful on goods

16321

Claims settlements on high risk insurance/takaful relating to fire, marine, aviation, etc.

16322

Claims settlements on other general insurance/takaful

16323

Claims settlements on life insurance/takaful

16324

Claims paid/received on reinsurance/retakaful

16325

Claims paid/received on insurance/takaful on goods

16332

Auxiliary insurance services

FINANCIAL SERVICES

16410

Explicitly-charged financial services

16420

Explicit margins on buying and selling of financial instruments

16430

Explicitly-charged asset management services

16440

Financial intermediation service charges indirectly measured (fisim)

CHARGES ASSOCIATED WITH INTELLECTUAL PROPERTY RIGHTS (ROYALTY, PATENTS, COPYRIGHTS)

16610

Charges associated with intellectual property rights

16620

License fees to reproduce and distribute intellectual property

TELECOMMUNICATIONS, COMPUTER, AND INFORMATION SERVICES

16100

Telecommunication services

16510

Computer services

16520

Information services

OTHER BUSINESS SERVICES

Operational lease

Covers payments to/receipts from non-resident for operational leases and charters of ships and vessels, aircraft, and other transportation equipment such as railway cars, containers, rigs and etc. without crew.

12310

Rentals/operating leasing of aircraft (without crews)

12320

Rentals/operating leasing of ships and vessels (without crews)

12330

Rentals/operating leasing of other transport equipment (without crews)

16780

Rentals/operating leasing of dwellings, other buildings, and machinery

16720

Sharing of administrative expenses

16730

Research and development services

Technical, trade-related, and other business services

16740

Architectural, engineering, and other technical services

16750

Agricultural, mining, and on-site processing

16791

Trade-related services

16792

Waste treatment services

16793

Other business services

Professional and management consulting services

16760 and 16771

Advertising, market research, and public opinion polling services

Legal services

Please note that the beneficiary of the legal services fees should be a legal firm. Cover charges for legal services (legal advice, judicial and statutory procedures, etc.). This fee should exclude property price (should be reported under purpose code 39110 or 39120) or court settlement (should be reported under purpose code 21230).

Kindly check and confirm:

1. Purpose code

2. Country code

3. Specify type of legal service

16772

Accounting services

16773

Management consulting services

Personal, cultural, and recreational services

16810

Audio-visual and artistic related services

16820

Health services

16830

Education services

16840

Heritage and recreational services

16850

Other personal services

16900

Other services transactions nie

16910

Refunds relating to services transactions

GOVERNMENT TRANSACTIONS NOT INCLUDED ELSEWHERE

Covers payment to/receipts from non-residents on account of government-related transactions not included elsewhere

15100

Malaysian government offices abroad and foreign offices in Malaysia

15200

International organisations

15300

Trade missions

15400

Commission & other charges relating to loan obligations of the Malaysian government

15500

Bnm minting of coins and printing of notes

INVESTMENT INCOME

14110

Direct investment income

14120

Portfolio investment income

14140

Investment income attributable to non-resident policyholders in insurance, pension schemes and standardised guarantees

INTEREST INCOME

14210

Interest paid to/received from related non-resident company relating to loan obligations, including non-participating preference shares and financial leases

14220

Interest paid to/received from non-related non-resident company relating to loan obligations, including non-participating preference shares and financial leases

14230

Interest paid to/received from non-residents on deposit and Negotiable Instruments Of Deposits (Nids)

14240

Interest paid to/received from non-residents on investment in bonds and notes

14250

Interest paid to/received from non-residents on money market instruments

14260

Interest paid to/received from non-residents on cash pooling arrangement

COMPENSATION OF EMPLOYEES

14310

Wages and salaries in cash

14320

Wages and salaries in kind/benefits attributable to employees

14330

Employer's social contributions

OTHER PRIMARY INCOME

14410

Taxes on products and productions

14420

Subsidies on products and productions

14430

Rental on natural resources

SPECIAL TRANSACTIONS

17010

Inter-company settlement for offsetting payables against receivables

17020

Transfer by a company to/from its own current account overseas

17070

Transfer by a resident (exclude bank) to/from current account overseas of another resident company

SECONDARY INCOME

Government sector

(Covers Malaysian government's receipt from/payment to non-resident)

21110

Grants, aid, donations, and unclaimed monies

21120

Pension, gratuity

21131

Taxes on income, wealth and other taxable assets (government sector)

21132

Fines and penalties (government sector)

21133

Social contributions and benefits (government sector)

21140

Compensation and pledging

Private sector

Financial corporations, non-financial corporations, households, and npishs; education/training services in Indonesia

21210

Grants and gifts

21220

Workers' remittances

21230

Legacies, compensations, and prizes

21241

Taxes on income, wealth and other taxable assets (private sector)

21242

Fines and penalties (private sector)

21245

Net premiums on non-life insurance and standardised guarantees

21246

Non-life insurance claims and calls under standardised guarantees

CAPITAL ACCOUNT

Government sector

(Covers Malaysian government's receipt from/payment to non-resident)

22130

Other capital transfers (government sector)

Private sector

(Financial corporations, nonfinancial corporations, households and npishs)

22220

Migrant transfer

22230

Other capital transfers (private sector)

23000

Acquisition/disposal of non produced, non-financial assets

Direct investment

Equity capital

35130

Mergers and acquisitions

35140

Equity investment other than mergers and acquisitions

35200

Liquidation of investment

35300

Head office accounts in branches

35400

Capital expenditure in special enterprises/projects

Credit facilities

Credit facilities (long term loans) Original tenure exceeds one year

31111

Extension/receipt (drawdown) of long term loan to/from non resident

31112

Repayment of principal to/by non-resident on long-term term loan

31113

Prepayment of principal to/by non-resident on long-term term loan

Credit facilities (short term loans)

31121

Extension/receipt (drawdown) of short term loan to/from non-resident

31122

Repayment of principal to/by non-resident on short-term term loan

31123

Prepayment of principal to/by non-resident on short-term term loan

Non-participating

Redeeemable/non-reedemable preference shares. Please confirm if recipient co is non-related company. If otherwise, report under direct investment.

31311

Issuance

31312

Redemption

Financial lease

The lessee is deemed to be owner of the asset being financed, and assumed the rights, risk, rewards and responsibilities of ownership.


31411

Financial lease extension to/receipt from non-residents

31412

Repayment of financial lease to/receipt from non-residents

31413

Prepayment of financial lease to/receipt from non-residents

Revolving credit / overdraft facilities

Short-term facilities

31511

Credit facilities extension

To/receipt from non-resident

31512

Repayment of credit facilities to/by non-resident

31513

Prepayment of credit facilities to/by non-resident

Other long term loan facilities

Original tenure exceeds one year

31911

Extension to/receipt from non-resident

31912

Repayment of other loans facilities to/by non-resident

31913

Prepayment of other loans facilities to/by non-resident

Other short term loan facilities

Original tenure is one year or less

31921

Extension to/receipt from non-resident

31922

Repayment of other loans

Facilities to/by non-resident

31923

Prepayment of other loans facilities to/by non-resident

33000

Employee stock options

Long term cash pooling

Original tenure exceeds one year

31611

Extension to/receipt of cash pooling from non-resident

31612

Repayment of cash pooling to/by non-resident

31613

Prepayment of cash pooling to/by non-resident

Short term cash pooling

Original tenure exceeds one year

31621

Extension to/receipt of cash pooling from non-resident

31622

Repayment of cash pooling to/by non-resident

31623

Prepayment of cash pooling to/by non-resident

Real estates

Purchase/sales of real estate in Malaysia

39111

Purchase/sale of real estate in Malaysia (commercial)

39112

Purchase/sale of real estate in Malaysia (residential)

Purchase/sales of real estate abroad

39121

Purchase/sale of real estate abroad (commercial)

39122

Purchase/sale of real estate abroad (residential)

EQUITY SECURITIES

Corporate stocks and shares

Purchase/sale of listed and unlisted equity sahres, unit trusts units, transferable subscription right (Tsr) and any rights issue or option in respect of such rights. also include participating preference shares.

36110

Issued by residents in domestic capital market

36120

Issued by residents in international markets

36130

Issued by non-residents in international markets

36140

Issued by non-residents in domestic capital market

DEBT SECURITIES

Bonds and notes

Purchase/sale of private debt securities, bonds, debentures, notes and any similar debt instruments with original tenure of more than one year

36210

Issued by residents in domestic capital market

36220

Issued by residents in international markets

36230

Issued by non-residents in international markets

36240

Issued by non-residents in domestic capital market

Money market instruments

Purchase/sale of money market or negotiable instruments with original more than one month and up to one year. Includes treasury bills, commercial and finance papers, banker's acceptances and negotiable instruments of deposits.

36310

Issued by residents in domestic capital market

36320

Issued by residents in international markets

36330

Issued by non-residents In international markets

36340

Issued by non-residents In domestic capital market

Government securities

Debt securities issued by governments and government-related agencies with original tenure of more than one year.

36410

Purchase/sale of Malaysian government securities

36420

Purchase/sale of foreign government securities

FINANCIAL DERIVATIVES

37100

Swaps

37200

Forwards

37300

Futures

37400

Options

37900

Other derivatives

OTHER INVESTMENT

Deposit

39210

Placement/withdrawal of deposits of residents with/from financial institutions abroad

39220

Placement/withdrawal of deposits of residents with/from offshore financial institutions in Labuan

34000

Subscriptions/contributions to/reimbursement from international organizations

Own account transfer

72511

Foreign currency transactions to own account Hheld within JP Morgan Malaysia

72512

Foreign currency transactions to own account held with other financial institutions in Malaysia

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