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-   -   Tax Free Car Exemption Cut off Date Extended (https://britishexpats.com/forum/retirement-mm2h-205/tax-free-car-exemption-cut-off-date-extended-906048/)

kiat137 Nov 20th 2017 8:14 am

Tax Free Car Exemption Cut off Date Extended
 
Previously MoF announced that there will be no more car tax exemption for MM2H starting from 1 Jan 2018. Many car manufacturer stop receiving order from Sep 2017.

After gathering feedback from MM2H agents, the government agreed to extend this action to 31 Dec 2018. The condition is participant must do the first time mm2h endorsement within 2017.

I believe the car manufacturer will stop receiving order on Sep 2018. So for those who endorsed your MM2H visa this year, you're still eligible to purchase a tax free car. If you need recommendation of car dealer who clear about the tax free application process, please feel free to check with me.

Thank you!

Macsta Nov 20th 2017 9:32 am

Re: Tax Free Car Exemption Cut off Date Extended
 

Originally Posted by kiat137 (Post 12385749)
Previously MoF announced that there will be no more car tax exemption for MM2H starting from 1 Jan 2018. Many car manufacturer stop receiving order from Sep 2017.

After gathering feedback from MM2H agents, the government agreed to extend this action to 31 Dec 2018. The condition is participant must do the first time mm2h endorsement within 2017.

I believe the car manufacturer will stop receiving order on Sep 2018. So for those who endorsed your MM2H visa this year, you're still eligible to purchase a tax free car. If you need recommendation of car dealer who clear about the tax free application process, please feel free to check with me.

Thank you!

Many thanks kiat137 for the information.

I have just noticed the announcement is up on the official MM2H site.

kiat137 Nov 20th 2017 11:53 pm

Re: Tax Free Car Exemption Cut off Date Extended
 

Originally Posted by Macsta (Post 12385783)
Many thanks kiat137 for the information.

I have just noticed the announcement is up on the official MM2H site.


You're welcome. Just keep in mind I believe the car manufacturer will practice the same. They will stop taking order probably start from Sep.
Therefore if you want to enjoy the tax exemption please buy it early since government give extra time.

ssoomro Dec 11th 2017 4:46 am

Re: Tax Free Car Exemption Cut off Date Extended
 
Here is the link to MM2H govt site for the extension of Tax Free car incentive: Purchase or Import a Car - MM2H Official Portal

nks900 Apr 27th 2018 10:12 am

Re: Tax Free Car Exemption Cut off Date Extended
 
How does this (car) tax benefit "extension" affect importing our own car ? We are due to renew our MM2H in a years time. If bringing in our car in not possible (upon renewal), it will cause a serious dent in our resources! Does anyone know!?

RedApe Apr 28th 2018 3:49 am

Re: Tax Free Car Exemption Cut off Date Extended
 
I don't think they ended the opportunity of importing a used vehicle without duty, but you may wish to contact the MM2H gov about that. Under the old rules if you wanted to import a car you had to apply for approval within two years of the visa being issued. I don't think they allowed it on reapplication (by this do you mean RENEWAL?). The car shall be pre-owned for at least thirty-six (36) months by the MM2H applicant before the commencement of the MM2H visa; also the vehicle had to be imported from the country of origin or last domicile country of the MM2H applicant. You cannot sell the car for at least five years after bringing it into the country. At the time of the sale, the purchaser will have to pay taxes based on a valuation of the car at that time.

The types of vehicles entitled under this incentive are saloon (sedan) cars, Multi-Purpose Vehicles (MPV), Sports Utility Vehicles (SUV) and Four-Wheel Drive (4WD) vehicles only. Commercial vehicles such as lorries, vans, buses, limousines and other types of vehicles are not eligible for this tax incentive.

I found this on the FAC of agency though it looks like it comes from either the Ministry of Finance or MOTAC.

"PROCEDURE TO IMPORT A PRE-OWNED PRIVATE VEHICLE (CBU) INTO MALAYSIA.

The supporting documents needed to obtain approval for exemption of import duty and excise duty that is limited to RM150,000 for the importation of a pre-owned private vehicle (CBU) into Malaysia is as follows:

1) A copy of MM2H approval letter from Immigration Department of Malaysia;
2) A copy of MM2H participant’s international passport (pages that display the identity of the applicant);
3) A copy of MM2H participant’s international passport (pages that display clearly the multiple entry visa and MM2H visa);
4) A copy of the vehicle registration card (to provide an English translation for information that is in a foreign language);
5) A copy of approval letter for the Approved Permit (AP) to IMPORT the vehicle, from the Ministry of International Trade and Industry (MITI);
6) A copy of the fixed deposit statement, bank statement and 3 month salary slips;
7) A complete copy of the Sales and Purchase (S&P) or Tenancy Agreement in Malaysia under the applicant’s name [I'm not sure this is applicable] and
8) Representative/agent on behalf of MM2H applicant, a copy of license/permit approved from Ministry Tourism and Culture of Malaysia or letter of authorization from MM2H applicant must be submitted together during application.

The Ministry of Finance, from time to time, is entitled to request additional information, depending on the submission of the application. All documents mentioned above shall be signed and certified by Malaysian Government officers or the Commissioner of Oaths before being scanned and uploaded into the online system.

This duty exemption incentive application should be submitted online at in http://smpc.treasury.gov.my. Applicants are required to obtain an ID and password in www.digicert.com.my with a fee.
If the application is made through agents / representatives, the agents / representatives needs to obtain an ID and password for the applicant and attach a copy of the applicant’s identity card and the authorization letter from the applicant.
Instructions on how to fill out the online form is available on MANUAL SMPC & FAQ DIGICERT. All decisions will be available online."

nks900 Apr 28th 2018 11:21 am

Re: Tax Free Car Exemption Cut off Date Extended
 
Thanks RedApe.
I was a regular on old Scott's Forum. Good to be back in the saddle!

From what I can remember, albeit some 9 years ago, every 10-year Renewal will entitle 1 car to be imported taxed-free. You are quite right; I have to go and read up the official site ago. I am also hoping others who have recently Renewed after ten years can offer some gem of knowledge.

RedApe Apr 29th 2018 3:51 am

Re: Tax Free Car Exemption Cut off Date Extended
 
The MOTAC MM2H web site has been down for a few days but it's up again and here is what it says now (I don't recall that this language was there before):
"The Goverment has decided to abolish the tax incentive on the purchase of a new locally assembled vehicle or the import of a pre-owned private vehicle into Malaysia under MM2H Programme. Therefore, this tax incentive will be terminated effective from 1 January 2018. However, Ministry of Finance will give special consideration to MM2H participant with first MM2H’s Visa approved beginning 1 January 2017 until 31 December 2017 to submit complete application via Sistem Maklumat Pengurusan Cukai / Sistem Maklumat Pengurusan Cukai Kerajaan Malaysia not later than 31 December 2018."

By my reading that means you are out of luck. But you can try, especially if you can find that old wording. Perhaps it is on your original Terms Letter?

nks900 Apr 29th 2018 2:21 pm

Re: Tax Free Car Exemption Cut off Date Extended
 
Thanks RedApe. I have kept all docs from 9 years ago. However, knowing how matters transpire in MY, I believe there will be no room for maneuvre regarding this taxed-free import of car despite previous t&c since the latest regulation states the case very clearly. I wouldnt even waste my time stressing myself out trying to fight my case! I simply vote with my feet and not renew.

In our circle of MM2H expats, 3 couples have quit MY; the latest 6 months ago. Another couple,British hubby died 11 months ago, widow (Malaysian) still awaiting return of FD and they stated that Customs will charge her RM50+K if she should wish to sell their manual 315BMW. She will currently get about RM30K if she's lucky.

All in all.... lots of things leaving bad taste in mouth!!

RedApe Apr 30th 2018 7:04 am

Re: Tax Free Car Exemption Cut off Date Extended
 
Yes, the benefits are certainly eroding. I'm wondering if you would have been even able to import a car upon renewal under the old revision to the Car Import rules. There's no mention of any capability of getting a used vehicle in upon renewal on that one either. But maybe they issued some sort of notice at the time about "grandfathering" or a deadline.

Curious about why the British-English couple were not on a Married Long Term Visa...but perhaps he was attracted to the benefits of MM2H. Wouldn't she be able to sell the car after 5 years (beyond import) without any customs duties being imposed? There is the little complication that she is Malaysian and not merely asking to have the principal MM2H recipient be transferred to her name. She technically cannot do that since she was no in the MM2H program.

I assume this is all being done as an inheritance via will. She needs an estate lawyer.

And any duty should be based on the CURRENT valuation of the vehicle...not when it was new or when it was imported.

nks900 May 10th 2018 8:57 am

Re: Tax Free Car Exemption Cut off Date Extended
 
Hi RedApe, Good point you brought up re SimYing and her late Brit hubby; complication as the return of the FD would now be a Probate matter - further complicated as she is not on MM2H but still a Malaysian citizen. She probably has a local solicitor... how good?Mmmm. From my experience the granting of Long-Stay Spouse Visa is a hit and miss affair; very long winded (red tape) and usually only 3 months is granted for the first successful attempt. Then repeated extension-applications will "hopefully" get you a longer stay each time. It still meant running up and down to PutraJaya! My Malaysian nephew and his Taiwanese wife are suffering this currently. Didnt listen to me when I advised her to go the MM2H route; got the dosh, too tight to spend! :)

InFlagranteDelicto May 11th 2018 5:03 pm

Re: Tax Free Car Exemption Cut off Date Extended
 
Is the Tax free car exemption a major issue?
How are the local vehicles? Are they reliable? I remember a lot of Myvis driving around when I was there.

nks900 May 11th 2018 7:48 pm

Re: Tax Free Car Exemption Cut off Date Extended
 
In my opinion, the Tax-Free Car Benefit is a major issue because the purchase of a vehicle is one of the most expensive personal capital expense. Take that away, what other true benefits are there besides the HOT weather and local foods. The beaches are getting filthier. Can no longer hold a part-time job, cant buy medical insurance (over the age of 65) The cost of living has rocketed, driving standards are getting worse, even the banks are insisting we give permission to "share information with other financial institutions" when/should we place additional investments. So are our (bank) investments very soon not going to be really tax-free?

Living in MY cost us approx RM20K per annum excluding food and beverages, and we would consider ourselves living frugally - no weekly maids, cooks or gardeners. eating local, non-gamblers, tee-total!. With the initial cost of buying a property and noticeable inflation, removing the Tax Benefits will be the nail in the coffin. for this Program

Are local vehicles reliable...? There are no MY statistics available..There is also no annual compulsory M.O.T. Has anyone noticed how shabby the local car paint-work looks after 5 years? The few local/Japanese cars still on the road with excess of 80,000 miles on the clock still cost around RM25k- RM35K.

Do a careful search on why Proton and Perodua vehicles are no longer imported by UK or Europe. But more importantly (for MM2H applicants, who are mainly on fixed incomes) is obviously Costings. Eg: A Ford Focus in MY costs approx RM135,000. A similar Ford Focus in UK will be approx £14,000.(less 20% VAT/GST if exported). A 2-3 year old Mercedes GL costs approx RM500,000; in UK a similar Merc will cost approx £25,000. Even with adding £1000 for container-shipping cost, it will still be quids in importing a Tax-Free preOwned car.

SushiFan May 12th 2018 7:36 am

Re: Tax Free Car Exemption Cut off Date Extended
 

Originally Posted by InFlagranteDelicto (Post 12497766)
Is the Tax free car exemption a major issue?
How are the local vehicles? Are they reliable? I remember a lot of Myvis driving around when I was there.

The “tax free car” was not really tax free. The tax was deferred and needs to be paid once you sell the car which you bought tax free. The paperwork was a hassle and would cause a delay in delivery of multiple months. All in all I decided to not use this facility and keep the cash in the fixed deposit, receiving annual interest.
Perodua Mivy’s are sold elsewhere under the Daihatsu brand. Being a subsidiary of Toyota, this is a car with reasonable quality.

RedApe May 13th 2018 4:55 am

Re: Tax Free Car Exemption Cut off Date Extended
 

Originally Posted by SushiFan (Post 12498017)

The “tax free car” was not really tax free. The tax was deferred and needs to be paid once you sell the car which you bought tax free. The paperwork was a hassle and would cause a delay in delivery of multiple months. All in all I decided to not use this facility and keep the cash in the fixed deposit, receiving annual interest.
Perodua Mivy’s are sold elsewhere under the Daihatsu brand. Being a subsidiary of Toyota, this is a car with reasonable quality.

I think you mean that you needed to pay back the duty in it's entirety if one sold the car back before 5-Years.

"10) An MM2H participant is only allowed to sell/transfer ownership of the exempted vehicle after five (5) years from the date of registration of the vehicle with the consent of the Royal Malaysian Customs Department. The duties, based on the current evaluation determined by the Royal Malaysian Customs Department, need to be paid before the transfer of ownership takes place.
11) Any breach of the above conditions shall lead to the revocation of this incentive and the MM2H participant shall be required to refund to the Government of Malaysia, the amount of duties exempted for the said vehicle."

So in case (11 - selling before 5 years) you were on the hook for all the duties. But in case (10) there is ambiguity.

Was the tax exemption 100% and the RMCD would charge no duty? Usually the term is "tax deferred" or "tax suspended". Exemption means zilch...or a specified percentage. But it was still vague because they talk about valuation.

OR would they charge duty based upon the depreciated worth of the vehicle at "fair market" prices. Vehicles typically depreciate almost 20% after the first year. But some high end cars may depreciate as much as 35%. After three years depreciation may range from 35-55%. After five years the value of the vehicle would likely be 50-70% of the original purchase value. If you WERE importing a used car (and it had to be a couple of years old) it would have been important to get a current devaluation estimate placed in your customs paperwork. Keep a copy. And maybe get another estimate for what the valuation would be in 7, 8, 9, and 10 years.

Anyone ever actually use this and then sold their locally-made vehicle who can tell us if they paid import duty (on their used vehicle) or excise tax (on the local car)?


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