A Guide to Malaysia’s Tax Incentives and Benefits for Businesses Using Blueshark’s Leasing Programme

September 26, 2023

Take Advantage of Local Government Incentives and Benefits to Grow Your Business and Save Big!

In an era driven by environmental consciousness and cost-effectiveness, it is evident that local tax incentives and benefits play a crucial role in promoting the acquisition of electric vehicle (EV) fleets by businesses and individuals.

Understanding these incentives is crucial for businesses seeking more sustainable and economical transportation solutions. From tax exemptions and favourable depreciation rules to reduced operating costs, these incentives make the transition to electric vehicles an economically and environmentally sound decision for businesses of all sizes.

As EV adoption becomes a priority for the Malaysian government as manifested in the 12th Malaysia Plan to make our country a carbon-neutral nation by 2050, this initiative promotes the opportunity to adopt EVs into the future business model through multiple incentives and benefits to the business owner.

The Blueshark Leasing Programme was designed to provide businesses with the ability to jumpstart their logistic operations at a more modest expense compared to traditional fleet management.

Government EV Incentives

Let’s look at the current Government Benefits and Tax Incentives for business owners looking to adopt and manage a fleet of electric vehicles in the inventory.

Tax Incentives and Benefits for Businesses:

1. Road Tax

Road tax exemption until 2024.

2. Tax Deduction

Until 2025, businesses can claim up to RM300,000 in tax deductions on rental expenses for non-commercial electric vehicles.

3. Import Tax

Import duty and excise duty exemption for fully-imported (CBU) electric vehicles until the end of 2025, whereas imported components for locally-assembled (CKD) electric vehicles are exempted from full-import tax until the end of 2027.

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Tax Incentives and Benefits for Individuals:

The government also offers personal income tax reliefs for individual EV owners which includes being exempted from personal income tax for up to RM2,500 for costs related to EV-charging hardware and services until the end of 2023.

To recap, businesses and individuals can save more by leveraging these government incentives and tax benefits whilst collectively contributing towards the country’s goal of reducing its carbon footprint.

The choice is clear—Embrace the future of sustainable transportation with the Blueshark Leasing Programme and reap the rewards of a greener, more cost-effective fleet.

This concludes our article series exploring the benefits of Blueshark's Leasing Program. If you're not yet caught up or want to learn more about Capital Expenditures and Operational Expenditures when starting your own fleet inventory, check out our previous articles.