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Buying Importing Car

BUYING OR BRINGING A CAR TO MALAYSIA


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People moving to Malaysia under the Malaysia My Second Home (MM2H) can either bring one, previously owned car into the country without paying any duties or purchase a locally assembled car free of all taxes. If you choose to import a car you must apply for approval within six months of the visa being issued. If you buy a local car then you have up to one year to make the application for approval. You cannot sell the car for at least two years after buying it or 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.

There are basically three categories of cars sold in Malaysia, those which are produced by Malaysian auto makers such as Proton or Perodua, those which are assembled locally and have a mixture of imported and local components (referred to as CKD – completely knocked down) and those that are imported ready to sell (referred to as CBU – completely built up). The MM2H duty free eligibility only applies to the first two categories.

The risk of bringing in a fully imported model is finding places to service it and getting spare parts. Some companies which fully import cars have a reasonably good servicing network while other sellers (particularly those selling imported second hand cars) expect you to find your own place to service the car.

Although cars are not that cheap in Malaysia, drivers have the benefit of lower petrol prices than many other countries which can go a long way to reduce the running costs compared to most western countries. One expat who bought a duty paid car calculated that it was actually cheaper for him to buy and operate his car here than the same car in the United Kingdom. The higher purchase price was offset by lower petrol and servicing costs.

One auto company in Malaysia offering services for MM2Hers is BMW Malaysia. If you’d like to explore their options, visit this page.

 

MM2H APPLICATION FOR THE EXEMPTION OF TAX/DUTY ON ONE MOTORCAR

 

TAX INCENTIVES

The MM2H participant may import one motorcar which belongs to him/her from his/her country of citizenship or where he/she last domiciled. He/she will be exempted from paying import duty, excise duty and sales tax on the imported motorcar. The car must have been owned by the visa holder before their MM2H visa was approved. It should be noted that the tax waiver does not apply to motorbikes
OR
The MM2H participant may purchase one new motorcar made or assembled in Malaysia. He/she will be exempted from paying excise duty and sales tax on the new motorcar.

TERMS AND CONDITIONS

  1. The applicant is a participant of MM2H approved by Immigration Department of Malaysia.
  2. An application to IMPORT a motorcar from the participant’s country of citizenship/last domicile must be done within a period of six months from the date the MM2H visa is endorsed on his/her passport. The MM2H participant should be the owner of the motorcar as evidenced in the motorcar registration document prior to obtaining the MM2H visa.
  3. An application to PURCHASE a new motorcar made or assembled in Malaysia must be done within a period of one year from the date the MM2H visa is endorsed on his/her passport. Do not make an outright purchase of the motorcar before obtaining approval for tax/duty exemption from the Treasury. However, a booking for a motorcar may be made prior to obtaining approval from the Treasury.
  4. Importation or purchase of motorcar must be for personal use only and not for commercial use.
  5. The MM2H participant is eligible for tax/duty exemptions for only ONE car.
  6. Tax/duty exempted motorcars which are subsequently sold or transferred will be subjected to import duty, excise duty and sales tax according to the prevailing rates.
  7. For the purpose of MM2H, a motorcar includes a saloon car, a multipurpose vehicle (MPV), a sports utility vehicle (SUV) and a 4-wheel drive vehicle. It excludes commercial vehicles such as vans, buses and lorries.

THE APPLICATION PROCEDURE
Stage 1
Online Submission to Ministry of Finance (MOF)

1. Purchase Digital Certificate necessary for online application – contact info@mm2h.com for assistance
2. Form MM2H/07 (1)
3. Certified letter from Immigration Department of Malaysia, stating that applicant is an MM2H participant
4. Certified copy of passport – personal particulars page
5. Certified copy of passport – MM2H visa page
6. Provide copy of car registration documents. If not in English / BM, please submit a certified translation
7. Covering letter from the agent if applicable

Stage 2
Submission to Ministry of International Trade & Industry (MMTI)

1. Covering letter from applicant stating reasons to import the car
2. Form JK69
3. Passport and MM2H visa
4. MM2H conditional approval letter
5. Copy of international or Malaysian driving licence
6. Duty exemption letter from Ministry of Finance
7. Car registration documents in applicant’s name
8. Insurance coverage for the vehicle in applicant’s name
9. Invoice / purchase proof of vehicle
10. Certified translations of all documents if not in English / BM

Application to purchase new car made or assembled locally
Documents required:

1. Digital Certificate – contact info@mm2h.com for assistance
2. Form MM2H/07 (1)
3. Certified letter from Immigration Department of Malaysia, stating that applicant is an MM2H participant
4. Certified copy of passport – personal particulars page
5. Certified copy of passport – MM2H visa page
6. Official car-price quotation
7. Car purchase/order form
8. Covering letter from the agent if applicable

Stage 1: Approval for the car make and model
Stage 2: Upon securing approval at Stage 1, the successful applicant has to furnish the Treasury with details of a specific motorcar allocated for him/her, namely the chassis number and the engine number. Subsequently, another approval letter will be given for Customs clearance for that particular motorcar. Usually this will be done by the Car agent or dealer. Notification of approval is given online. 


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