Malaysia: Sales tax exemption on purchase of passenger cars ends 30 June 2022

Registration date extended through 31 March 2023

Sales tax exemption on purchase of passenger cars ends 30 June 2022

The Ministry of Finance on 20 June 2022 issued a media release regarding the sales tax exemption available with regard to the purchase of passenger cars. 

According to the release, the sales tax exemption—an exemption that began 15 June 2022 for 100% of the purchase price on domestically assembled passenger cars and 50% on imported passenger cars—ends 30 June 2022.

Purchasers who “book” a vehicle purchase by 30 June 2022 can still benefit from the sales tax exemption, and the registration date with the Road Transport Department Malaysia for the vehicle is extended through 31 March 2023.

KPMG observation

Tax professionals have observed that certain details require clarification (e.g., what is meant by the term “book”). It remains to be seen whether there will be further announcements.

Read a June 2022 report prepared by the KPMG member firm in Malaysia


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