07 Jul 2015 12:00:00 AM

FAQ:LOCALLY MANUFACTURED / ASSEMBLED COMPLETE KNOCKED DOWN (CKD) VEHICLES

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Locally manufactured / assembled Complete Knocked Down (CKD) vehicles
  • How long do have to own my tax-free CKD vehicle purchased through the REP, before selling? Will I be responsible for paying tax on the vehicle when I sell it?
    Once you have purchased your CKD vehicles tax-free, you must have them in possession for a minimum period of two (2) years before you are allowed to sell them off to a third party.

    In the event the approved Applicant intends to sell the vehicle after the 2-year period, then the approved Applicant is required to obtain prior approval from Ministry of Finance and pay the remaining duties and/or taxes to the Royal Malaysian Customs Department prior to the sale. Please refer to the Ministry of Finance for more information on this. 

    Vehicles cannot be sold or its ownership transferred (penukaran hak milik) without paying excise duty and sales tax calculated by the Royal Malaysian Customs during the sale or ownership transfer. 

  • What types of CKD vehicles can approved REP applicants purchase tax-free?
    Approved REP applicants may enquire for the list of locally assembled/manufactured CKD vehicles currently sold in the Malaysian market from the Malaysian Automobile Association (MAA) at their website. 
  • What is the CKD purchase process through REP?

    To purchase CKD vehicles under the REP, returnees will have to approach a car dealer with a copy of their Surat Akuan Tarikh Kembali and Approval Letter.

    Here are the steps to claiming the CKD vehicle incentive: 

    • Make a booking, and get the chassis number and engine number from the car dealer
    • Once the information is available, you may proceed with a tax exemption application.
    • Visit the MyCukai portal and register for an account. 
    • The Ministry of Finance (MoF) will process the tax exemption and issue the Tax Exemption letter (stating the car’s chassis and engine number). The car dealer must bring the letter to the Customs department for endorsement. After that, it reverts to a normal purchasing process.
  • Am I eligible to purchase second hand vehicles or I'm only entitled for the brand new vehicles?
    Using the REP car incentive, you are only entitled to purchase a new vehicle (car) and not a second-hand vehicle.
  • What are the tax amounts for different brands and models of CKD vehicles?
    Approved REP applicants may refer to the Customs Department for the exact tax amounts. TalentCorp does not have this information. 

    Alternatively, applicants may refer to MAA’s duties and taxes page as a general guide. Taxes will differ based on the make, model, engine capacity, and car dealer’s profit margin. 
  • Can I sell a CKD car purchased tax-free through the REP, before the 2-year mandatory ownership timeframe is up?
    Approval of excise duty and sales tax will be withdrawn if recipient violates any of the conditions contained in the approval letter from TalentCorp. This means applicants will be charged full duties and taxes on the car if it is sold within a 2-year period.  
  • How many CKD cars can a married couple purchase under the REP?
    Applications would have to be submitted individually and if approved, each applicant is eligible for one car.