One of the biggest advantages of getting a retirement visa in Malaysia is being able to buy a car tax-free. In our case we saved about MYR 40,000 (GBP 8,000). You can only buy one car tax-free.
If you want to part exchange for a new car in the future, though, or simply want to sell the car, it is not as easy as you might expect.
We took the easy way, and used the services of our visa agent, who will do everything for you: explain the system, take you to car showrooms, and once you have selected a car, do all the paperwork for you. Then you wait for up to several months for the car to be manufactured/assembled, and then be delivered to you. The agent’s fee is only a small amount compared to the tax savings.
The visa agent will probably also take care of arrangements to part exchange or sell your tax-free car. However, the car dealer you are purchasing your next car from may also help you, in which case you can avoid the agent fee. You may find it helpful to go with someone who speaks Malay, otherwise. It seems that even if your car is several years old, you cannot sell without this bureaucratic procedure and paying some of the tax that had been previously waived. The following is the procedure if you live in Penang.
- Go to the Butterworth Customs office behind Sunway Carnival. There you need to write a letter asking permission to sell the car, and you will be told the specific format you need for the letter. Once you have completed the letter they send it to Putra Jaya. (PJ)
- The Butterworth Customs office telephones you and you return to the office to pick up the reply from the PJ office. This letter tells you how much tax you must repay.
- You take the letter to an office above the post office in Beach Street (7F?) and pay them the tax by bank draft, and receive a chop and a receipt.
- You need to download a form from the road tax department, and then go to JPJ (Road Transport Department) at Bukit Jambul with this form, receipt, the passport you had at the time you bought the car, and the car registration form – and copies of all these, and a copy of your visa. JPJ takes the registration form and gives you a receipt. You are now done. You can hand the car over to the dealer, or purchaser.