Tax Free Vehicle without MM2H

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Hi all,

Thanks for all the great infomation posted here.

The only real benefit for me with the MM2H is the tax free car purchase. So, I'm curious if anyone here knows the procedure for importing an car into Malaysia without MM2H status. My wife has a Malaysian Passport and she has friends that were able to do it tax free. Returning from o'seas study, returning from work o'seas and similar cases.

Appreciate any input.

Cheers.

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hi, swordfish,

And welcome to the site. All the car posts are about importation under the mm2h scheme so there's nothing about doing it otherwise.

Maybe some member has some experience and will post.

For me the benefit of mm2h is the ability to stay here for up to 10 years with no immigration, tourist visa hassle. I never used the tax-free car incentive when I first got the visa.

Now that I've just renewed I get a 2nd chance at tax-free but I'll let it go as I'd really like an older mercedes. I've been looking for a few weeks. I want a 230E as anything bigger gets walloped for road tax. Something between 1982 to 1985 so it's a 123 with a black engine. They're a classic design and still look classy.

Still, all I know is that if you import a car you'll need to pay import duties and arrange for an import approval permit. AP's have been an issue for a number of years as they're given out as a form of patronage. They're worth something like RM 50,000 each.

Still, maybe someone has something.   

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Hi Scott,
Thanks for your reply. For many years I've looked with envy at those old Benz's and hired many when they were used as taxi's in the state capitals. Those diesel engines were garunteed for 600klms. I currently have a Wira that has been completely destroyed by the whole extended family banging it around. Recently two Malaysian friends living in Australia, one with PR, returned to KL under the 'returning Professionals' programme along with the other benefits they were granted permission for two new BMW 5's. A quick RM300K.
Thanks again for a very informative forum.
Fally 

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hi,

When the tax-free mm2h vehicle is sold it is assessed for tax.

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hi,

When the tax-free mm2h vehicle is sold it is assessed for tax.

scott.

Thanks Scott...I was wondering about that.
I've read the Government website on this subject and seen that the vehicle cannot be sold in less than 2 years without subject to full tax. Thereafter, it is assessed as a used vehicle for taxation.
Grateful if you tell us how this works.
In a normal situation (not mm2h) if a used car is sold in Malaysia...is there some tax applicable, what kind of tax is this and who pays, the buyer or the seller?

David

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hi,

Thanks David for the post. It's my understanding that any tax on a car is paid at the point of purchase. Other members may know better.

There is no used-car sales tax. I've recently been around enough used car sales yards to know this.

I've also been told 50% of the time that the insurance can be transferred, and 50% of the time that it can't. I'm still trying to find out this one but it's another thread that I'll start soonish.

Tax is only payable where it was not paid to start with, such as mm2h tax-free car incentive.

I don't know about the schemes that swordfish refers to. Maybe there's a tax element at re-sale that isn't mentioned?

For more information on this please check out : Selling Tax Free Car

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Thanks Scott for your response.

It makes sense that the normal system is a bit like UK and VAT; and Canada and GST, where the tax is applied at the point of a NEW sale.
The MM2H car purchase is an incentive, I believe, and not designed to be a 'money-maker'.

btw...when I lived in Hong Kong (1974-1990) I had a Mercedes 350SL. I bought it from a movie star who moved ON and UP. It is the only car I sold for more than I bought..and that was after 10 years of use! It was a chick magnet and I completely understand why young people like flash!
Good luck with your search for a Classic car.

It was in Penang as a young man that I purchased my first car...a Riley Pathfinder 1.5 litre with an aluminium body.  My pal Ossie, (the subsequent leader of a group called 'The Barron Knights' from UK) and I, drove that car from Butterworth to Singapore in 1958/9; my recollection of dates is poor but my memory of the event is vivid. We were issued machine guns for the trip but someone forgot to teach us how to fire them!

These days I take transit and am proud to use my senior discount, or allow my much younger wife to transport me safely in our Honda Minivan.

Being old sucks! 

Just yesterday, in Vancouver, the Skytrain new line from the Airport to Downtown was inaugerated...It was free travel all day and I rode the 4th train and stayed on it, back and forth for 2 hours. The trip normally takes 25 mins.

David

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Hi Scott

Theres a Merc for sale a couple of houses from me, its a black 200 and the style looks like its from the late 70s to early 80s. Let me know if you want the number!

looks like this one

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 With that headlight shape it is definitely pre 1985. I'd be interestd to know the rough price. I went to a few used car websites and was amazed by some of the prices (high).
Cheers

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Thanks Scott,

The haze is beginning to clear, well at least where I'm standing. So, if I import a tax free vehicle or purchase a tax free vehicle in Malaysia under MM2H and its sold prior to 2 years, tax is imposed. However, if the car is sold after two years no tax is paid by vendor or purchaser.

The following may be considered off-topic, however, in reference to my Malaysian friends returning under a different scheme they must retain the cars for three years after which they can sell the cars tax free. In hindsight, it was very crass of me to see the benefits of the MM2H as profit making.

A note to Davita re his wonderful Riley experience. I was still in primary school then although I did see a beatifully preserved Riley in Mandalay in 1980. My pedalo driver promised to collect me very early am one day. He did so, right on time and in grand style. He collected me in a Riley. Apparently he was a driver at the British embassy that was until they departed and left him with the Ambassadors summer car. He told me that he only drove it at night and very rarely.

Cheers,

swordfish

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hi,

These are great stories. Cheers.

The mercedes in the photo is a W115, I think. These date from 1968 - 1976. The design changed after 1976 to the W123 model with the more horizontal lights. And in 1982 the engines became direct injection which cut down on fuel. That why 123's from 1982 - 1986 are in demand. I'm open to having this corrected by those more in the "know."

After 1986 the engines became W124.

Prices for the pre-1980 models are from RM5,000 to about RM9,000. Prices for the 1982 - 1985 models are RM6,000 to RM9,000.

I'm looking for a 1985 model because I like the horizontal lines and the greater height of everything above the road, except the wheels, of course. In my last couple of cars I seemed to have avoidance problems with kerbs, and other slightly raised objects.

The car in your photo corporateangel certainly looks a smacker, so well kept. And a great colour. The style is a bit too early for me though as I'd feel, and look, like Dixon of Dock Green being taken for a ride he couldn't refuse.  Many thanks for the offer. BTW, do you know how much it is?

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He told me that he only drove it at night and very rarely. Cheers, swordfish

So presumably it didn't have heavily tinted windows!!!!!

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Tax free cars under MM2H cannot be sold within 2 years. Tax is payable at least until the car is 5 years old, (but on a sliding scale).
As far as I know nobody on this forum has test that time limit yet. (some have sold after 2 years but before 5).

All the info to date is available here on this forum if you have the time and inclination to look for it!!

Cheers

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Hi Scott

There's a 1984 230E for sale on Mudah (Penang).

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Tax free cars under MM2H cannot be sold within 2 years. Tax is payable at least until the car is 5 years old, (but on a sliding scale).
As far as I know nobody on this forum has test that time limit yet. (some have sold after 2 years but before 5).

All the info to date is available here on this forum if you have the time and inclination to look for it!!

Cheers

I searched both this forum and the Govt. MM2H website but did not find anything actually saying that after 5 years the tax was zeroed.
If MikeH had to pay 45%? of the original tax based of his cars current value after 4 years, why would they then decide that at 5 years the tax would be zero...makes no sense to me.
Still, seems like a good deal...I wish I could get away with paying taxes...Oh! I will if I'm accepted as an MM2H candidate.   

David