Go Back  British Expats > Living & Moving Abroad > Far East and Asia > Malaysia > Retirement and MM2H
Reload this Page >

2017 New Guideline for Car Tax Incentive

2017 New Guideline for Car Tax Incentive

Old Jan 17th 2017, 4:32 am
  #1  
Forum Regular
Thread Starter
 
kiat137's Avatar
 
Joined: Jul 2016
Location: Kuala Lumpur
Posts: 62
kiat137 is an unknown quantity at this point
Default 2017 New Guideline for Car Tax Incentive

There are some changes of Incentive of purchase a CKD car or import your CBU car for MM2H approved start from 1st January 2017.

1. Duration extended to 2 years. Compare with previous policies, if you want to enjoy tax free for purchasing CKD car you must purchase within the 1 years from the day you obtained MM2H visa, and 6 months to import your CBU car.

2. Tax incentive is limited to maximum RM 150,000. Previously there is no limitation on amount. RM 150,000 actually is more than enough to use.

3. Import of CBU car. Previously you just need to own the car in your home country for more than 6 months. Now you need to show that you own the car in your home country for more than 3years only eligible to apply for wave the import tax.
kiat137 is offline  
Old Jan 18th 2017, 2:38 am
  #2  
Just Joined
 
Joined: Jul 2015
Posts: 16
triage is an unknown quantity at this point
Default Re: 2017 New Guideline for Car Tax Incentive

Do you have a link to the official announcement?

Is the 150k limit you refer to the exempt tax value or the total price of the car?

Does the 2 year duration apply to all MM2H holders or just new ones from this point forward?
triage is offline  
Old Jan 18th 2017, 2:45 am
  #3  
Forum Regular
Thread Starter
 
kiat137's Avatar
 
Joined: Jul 2016
Location: Kuala Lumpur
Posts: 62
kiat137 is an unknown quantity at this point
Default Re: 2017 New Guideline for Car Tax Incentive

Originally Posted by triage View Post
Do you have a link to the official announcement?

Is the 150k limit you refer to the exempt tax value or the total price of the car?

Does the 2 year duration apply to all MM2H holders or just new ones from this point forward?

Yes, this changes announced verbally few months ago and now from the Tax department.
The link as follow: Exemption Guidelines

2 years duration apply to MM2H applicant who approved after 1st Jan 2017. Not applicable for those who approve before 1st Jan 2017.
kiat137 is offline  
Old Jan 18th 2017, 8:27 am
  #4  
BE Enthusiast
 
Joined: Aug 2015
Location: Penang
Posts: 919
SushiFan has a reputation beyond reputeSushiFan has a reputation beyond reputeSushiFan has a reputation beyond reputeSushiFan has a reputation beyond reputeSushiFan has a reputation beyond reputeSushiFan has a reputation beyond reputeSushiFan has a reputation beyond reputeSushiFan has a reputation beyond reputeSushiFan has a reputation beyond reputeSushiFan has a reputation beyond reputeSushiFan has a reputation beyond repute
Default Re: 2017 New Guideline for Car Tax Incentive

Some of the Terms and Conditions are rather "funny". The car which is tax exempted can only be sold after 5 years. If you elect to import your existing car it has to be at least 3 years old. So it means that you then have to try and sell an 8 years old car. Good luck with that, if you end up in that situation.
And I wonder why they want to see 3 month salary slips when you want to use this system.
SushiFan is offline  
Old Jan 18th 2017, 8:32 am
  #5  
Forum Regular
Thread Starter
 
kiat137's Avatar
 
Joined: Jul 2016
Location: Kuala Lumpur
Posts: 62
kiat137 is an unknown quantity at this point
Default Re: 2017 New Guideline for Car Tax Incentive

Originally Posted by SushiFan View Post
Some of the Terms and Conditions are rather "funny". The car which is tax exempted can only be sold after 5 years. If you elect to import your existing car it has to be at least 3 years old. So it means that you then have to try and sell an 8 years old car. Good luck with that, if you end up in that situation.
And I wonder why they want to see 3 month salary slips when you want to use this system.
I did check with the officer of Tax department. You still can sell your car in 5 years as long as with reasonable explanation & pay back some tax.
For 3 month salary slip I also don't get the reason, but reply from them that is required.
kiat137 is offline  
Old Feb 1st 2017, 3:04 am
  #6  
BE Enthusiast
 
Joined: Jan 2017
Posts: 392
Stuck in Auckland has a reputation beyond reputeStuck in Auckland has a reputation beyond reputeStuck in Auckland has a reputation beyond reputeStuck in Auckland has a reputation beyond reputeStuck in Auckland has a reputation beyond reputeStuck in Auckland has a reputation beyond reputeStuck in Auckland has a reputation beyond reputeStuck in Auckland has a reputation beyond reputeStuck in Auckland has a reputation beyond reputeStuck in Auckland has a reputation beyond reputeStuck in Auckland has a reputation beyond repute
Default Re: 2017 New Guideline for Car Tax Incentive

What is the $150,000 consist of in relation to price of car?

What of new cars, for example upgrading shortly to new car?
Stuck in Auckland is offline  
Old Feb 1st 2017, 7:30 am
  #7  
BE Enthusiast
 
Joined: Aug 2015
Location: Penang
Posts: 919
SushiFan has a reputation beyond reputeSushiFan has a reputation beyond reputeSushiFan has a reputation beyond reputeSushiFan has a reputation beyond reputeSushiFan has a reputation beyond reputeSushiFan has a reputation beyond reputeSushiFan has a reputation beyond reputeSushiFan has a reputation beyond reputeSushiFan has a reputation beyond reputeSushiFan has a reputation beyond reputeSushiFan has a reputation beyond repute
Default Re: 2017 New Guideline for Car Tax Incentive

Originally Posted by Stuck in Auckland View Post
What is the $150,000 consist of in relation to price of car?

What of new cars, for example upgrading shortly to new car?
1. Not $150,000 but RM150,000. The tax exemption can only be used for a maximum purchase amount of 150,000RM. If you want to buy a car which costs more than 150 k, you can use the rule only for the 150 k, and the rest is normally taxed.
2. You can use this tax exempt rule once. So if you already have a car which was not bought using this rule you can use the rule for the purchase of your new car.
SushiFan is offline  
Old Feb 3rd 2017, 8:32 am
  #8  
Forum Regular
Thread Starter
 
kiat137's Avatar
 
Joined: Jul 2016
Location: Kuala Lumpur
Posts: 62
kiat137 is an unknown quantity at this point
Default Re: 2017 New Guideline for Car Tax Incentive

Originally Posted by SushiFan View Post
1. Not $150,000 but RM150,000. The tax exemption can only be used for a maximum purchase amount of 150,000RM. If you want to buy a car which costs more than 150 k, you can use the rule only for the 150 k, and the rest is normally taxed.
2. You can use this tax exempt rule once. So if you already have a car which was not bought using this rule you can use the rule for the purchase of your new car.

Hi Sushi, RM 150,000 is not the car price but is the exempted amount.
Let's say the car list price is RM 300,000, exempted amount is RM 60,000 means not existed.
If the car price is RM 600,000, exempted amount should be RM 200,000 mean existed the limit, you have to pay RM 50,000 for the tax.
kiat137 is offline  
Old Feb 4th 2017, 4:03 am
  #9  
BE Enthusiast
 
Joined: Jan 2017
Posts: 392
Stuck in Auckland has a reputation beyond reputeStuck in Auckland has a reputation beyond reputeStuck in Auckland has a reputation beyond reputeStuck in Auckland has a reputation beyond reputeStuck in Auckland has a reputation beyond reputeStuck in Auckland has a reputation beyond reputeStuck in Auckland has a reputation beyond reputeStuck in Auckland has a reputation beyond reputeStuck in Auckland has a reputation beyond reputeStuck in Auckland has a reputation beyond reputeStuck in Auckland has a reputation beyond repute
Default Re: 2017 New Guideline for Car Tax Incentive

Originally Posted by kiat137 View Post
Hi Sushi, RM 150,000 is not the car price but is the exempted amount.
Let's say the car list price is RM 300,000, exempted amount is RM 60,000 means not existed.
If the car price is RM 600,000, exempted amount should be RM 200,000 mean existed the limit, you have to pay RM 50,000 for the tax.
thanks for that

Understand the RM200,000 less RM150,000 exemption provides balance of RM50,000.

But can you explain the difference in the 60/300 (20%) and 200/600 (33%)
is it a stepped scheme dependent on value of vehicle?

NZD Rate RM Tax Rate
$93,000 0.31 $300,000 $60,000 20%
$186,000 0.31 $600,000 $200,000 33%

What would it be for RM1 million vehicle
Stuck in Auckland is offline  
Old Feb 4th 2017, 8:40 am
  #10  
BE Enthusiast
 
Joined: Aug 2015
Location: Penang
Posts: 919
SushiFan has a reputation beyond reputeSushiFan has a reputation beyond reputeSushiFan has a reputation beyond reputeSushiFan has a reputation beyond reputeSushiFan has a reputation beyond reputeSushiFan has a reputation beyond reputeSushiFan has a reputation beyond reputeSushiFan has a reputation beyond reputeSushiFan has a reputation beyond reputeSushiFan has a reputation beyond reputeSushiFan has a reputation beyond repute
Default Re: 2017 New Guideline for Car Tax Incentive

@kiat137: thank you for that correction.

@Stuck in Auckland: which 1 million RM car did you have in mind to buy?
SushiFan is offline  
Old Feb 4th 2017, 9:32 am
  #11  
BE Enthusiast
 
Joined: Jan 2017
Posts: 392
Stuck in Auckland has a reputation beyond reputeStuck in Auckland has a reputation beyond reputeStuck in Auckland has a reputation beyond reputeStuck in Auckland has a reputation beyond reputeStuck in Auckland has a reputation beyond reputeStuck in Auckland has a reputation beyond reputeStuck in Auckland has a reputation beyond reputeStuck in Auckland has a reputation beyond reputeStuck in Auckland has a reputation beyond reputeStuck in Auckland has a reputation beyond reputeStuck in Auckland has a reputation beyond repute
Default Re: 2017 New Guideline for Car Tax Incentive

Originally Posted by SushiFan View Post
@kiat137: thank you for that correction.

@Stuck in Auckland: which 1 million RM car did you have in mind to buy?
Mulsanne and Golf GT

So assuming the vehicles need to be split one for each adult or is the condition one vehicle per family?
Stuck in Auckland is offline  
Old Feb 5th 2017, 12:00 am
  #12  
BE Enthusiast
 
Joined: Jan 2017
Location: Kuching, Sarawak
Posts: 654
RedApe has a reputation beyond reputeRedApe has a reputation beyond reputeRedApe has a reputation beyond reputeRedApe has a reputation beyond reputeRedApe has a reputation beyond reputeRedApe has a reputation beyond reputeRedApe has a reputation beyond reputeRedApe has a reputation beyond reputeRedApe has a reputation beyond reputeRedApe has a reputation beyond reputeRedApe has a reputation beyond repute
Default Re: 2017 New Guideline for Car Tax Incentive

ONE CAR...as far as I can see. Spouse is under the same MM2H application.

Purchase or Import a Car - MM2H Official Portal

I did find this "APPLICATION PROCEDURE FOR BRINGING IN SECOND VEHICLE" but notice the statement at the bottom of the form which makes it clear you'd be paying import duties.

http://www.mm2h.gov.my/pdf/mm2h7.pdf

"5. At Customs entry point, the amount of duty / tax payable for the car will be assessed by Customs. The amount to be paid must be done before Customs Clearance."
RedApe is offline  
Old Feb 5th 2017, 8:20 am
  #13  
BE Enthusiast
 
Joined: Aug 2015
Location: Penang
Posts: 919
SushiFan has a reputation beyond reputeSushiFan has a reputation beyond reputeSushiFan has a reputation beyond reputeSushiFan has a reputation beyond reputeSushiFan has a reputation beyond reputeSushiFan has a reputation beyond reputeSushiFan has a reputation beyond reputeSushiFan has a reputation beyond reputeSushiFan has a reputation beyond reputeSushiFan has a reputation beyond reputeSushiFan has a reputation beyond repute
Default Re: 2017 New Guideline for Car Tax Incentive

Originally Posted by Stuck in Auckland View Post
Mulsanne and Golf GT

So assuming the vehicles need to be split one for each adult or is the condition one vehicle per family?
You can apply for one car per MM2H application. If your spouse is on your application (or you are on your spouse's application) you can apply for one car.
If you want to buy these new you can't apply for the tax exemption because the rule only allows for locally assembled cars. I don't think that the cars you list are locally being assembled in Malaysia. If you already own these cars then you can use the second part of the tax exemption rule: importing them.
SushiFan is offline  
Old Feb 5th 2017, 11:24 pm
  #14  
BE Enthusiast
 
Joined: Jan 2017
Posts: 392
Stuck in Auckland has a reputation beyond reputeStuck in Auckland has a reputation beyond reputeStuck in Auckland has a reputation beyond reputeStuck in Auckland has a reputation beyond reputeStuck in Auckland has a reputation beyond reputeStuck in Auckland has a reputation beyond reputeStuck in Auckland has a reputation beyond reputeStuck in Auckland has a reputation beyond reputeStuck in Auckland has a reputation beyond reputeStuck in Auckland has a reputation beyond reputeStuck in Auckland has a reputation beyond repute
Default Re: 2017 New Guideline for Car Tax Incentive

Originally Posted by RedApe View Post
ONE CAR...as far as I can see. Spouse is under the same MM2H application.

Purchase or Import a Car - MM2H Official Portal

I did find this "APPLICATION PROCEDURE FOR BRINGING IN SECOND VEHICLE" but notice the statement at the bottom of the form which makes it clear you'd be paying import duties.

http://www.mm2h.gov.my/pdf/mm2h7.pdf

"5. At Customs entry point, the amount of duty / tax payable for the car will be assessed by Customs. The amount to be paid must be done before Customs Clearance."
Thanks
Stuck in Auckland is offline  
Old Feb 6th 2017, 12:16 am
  #15  
Forum Regular
Thread Starter
 
kiat137's Avatar
 
Joined: Jul 2016
Location: Kuala Lumpur
Posts: 62
kiat137 is an unknown quantity at this point
Default Re: 2017 New Guideline for Car Tax Incentive

Originally Posted by Stuck in Auckland View Post
thanks for that

Understand the RM200,000 less RM150,000 exemption provides balance of RM50,000.

But can you explain the difference in the 60/300 (20%) and 200/600 (33%)
is it a stepped scheme dependent on value of vehicle?

NZD Rate RM Tax Rate
$93,000 0.31 $300,000 $60,000 20%
$186,000 0.31 $600,000 $200,000 33%

What would it be for RM1 million vehicle

Hi, the tax rate is different depends on different brand and model of cars. What I stated is just an example.
kiat137 is offline  

Contact Us - Archive - Advertising - Cookie Policy - Privacy Statement - Terms of Service - Do Not Sell My Personal Information -

Copyright © 2021 MH Sub I, LLC dba Internet Brands. All rights reserved. Use of this site indicates your consent to the Terms of Use.