Want to save more tax when importing luxury supercar in Malaysia?
Yes there is a way to do it, which is by registering your car in Langkawi.
Langkawi is a duty-free area and many luxury car owners evade hundreds of thousands of Ringgit Malaysia in import taxes by storing their luxury cars there.
How does it work?
Let’s take for example a brand new McLaren GT.
In November 2019, an estimated tax-free price at launch was RM908,000 before any import taxes were incurred. Buy this car brand new, pay about RM150,000 deposit (cash) and the rest will be a new car loan that will be arranged by your appointed dealer.
Now, the import duty on a brand new luxury car like this will easily cost you around RM1.2 million or so. So, now you pay just RM150k and the remaining tax-free amount of about RM758,000 will be on monthly installments over a few years.
After that, you can get your car shipped to Langkawi to be stored at a pre-arranged warehouse, or you could use your own warehouse if you have one in Langkawi. The expected transportation cost of your new luxury car by trailer to Langkawi will cost you around RM 4000-RM6000, inclusive of ferry charges across the island and also insurance.
Storage charges? Yes it will be counted on a yearly basis, but the price range varies from different warehouse owners.
can i still drive my car?
You can still drive your supercar, as long as you have full road tax and insurance running. You can bring your supercar back to anywhere in Malaysia and drive it around, but for a maximum of 90days only in one calendar year.
However, you would need to place a bank guarantee of RM 200,000 with the Customs department to bring the car back home for 90 days. When you return your car back to Langkawi, your bank guarantee will be returned to you.
how much can i save on tax?
After 1 year – Your import car tax will be reduced by 30%. (In this McLaren case, you can save estimated RM 360,000)
After 2 years – Your import car tax will be reduced by 30% (1st year) + 15%, total 45%.
After 3 years – Your import car tax will be reduced by 30% (1st year) + 15% (2nd year) + 15% (3rd year), total 60% tax
So by the end of 3rd year, if you bring your luxury car back, you can save 60% of the original tax.
Of course there are other ways to save more on tax, if you are interested to know more please contact The Car Import Guru for more info.