Currently, MM2H participant may purchase one new car made or assembled in Malaysia which is exempted from excise duty and sales tax OR import one car which belongs to him/her from country of citizenship or where he/she last domiciled, which is also exempted from import duty, excise duty and sales tax for bringing in it into Malaysia for his/her personal use.
The Goods and Services Tax (GST) was imposed by the Government of Malaysia on the 1st of April, 2015. As of now, the Ministry of Tourism and Culture Malaysia has not received an official notification from the Ministry of Finance (MOF) to give any tax exemption to MM2H participants when they:
a) Purchase a new car made or assembled in Malaysia; or
b) Import a car which belongs to the participant in his/her country of citizenship or where he/she last domiciled.
Therefore any car which is purchased in or imported into Malaysia on or after 1st April, 2015 is subject to GST unless it is given exemption by MOF.