Road Tax Refund When You Sell or Deregister a Car

Yes, you can apply for a road tax refund in Malaysia after selling your car or permanently deregistering it, provided you meet JPJ’s requirements. However, the refund is not automatic. You must apply to cancel your Motor Vehicle Licence (LKM) and request a refund for the eligible remaining road tax fee.

If you have sold your car, scrapped an old vehicle or permanently stopped using it, you may be able to recover part of the road tax fee you have already paid. The amount depends on the remaining eligible period and JPJ’s calculation.

Here is how the refund works, what documents you need and where to submit your application.

Can You Get a Road Tax Refund After Selling or Deregistering a Car?

Yes. The registered vehicle owner can apply for an LKM cancellation and refund, subject to JPJ’s requirements.

However, the process depends on why you are cancelling the road tax. Selling a car to another person is different from scrapping or permanently removing a vehicle from the road.

Situation	Can you apply for a refund?	What you need to do
Selling your car to another person	Yes, subject to JPJ’s requirements	Complete the ownership transfer and apply for an LKM cancellation and refund
Trading in your car at a dealership	Yes, subject to eligibility	Complete the ownership transfer and keep the relevant transaction receipt
Scrapping or disposing of your car	Yes, if it is properly disposed of and will no longer be used on the road	Complete the relevant vehicle cancellation process and prepare supporting documents
Car damaged in an accident	Not automatically	Check the applicable cancellation requirements. An accident alone does not guarantee a refund
Exporting your car overseas	You may qualify	Prepare the relevant export and vehicle cancellation documents
Road tax has already expired	No refund for the expired period	There is no remaining valid LKM period to refund

Important: A road tax refund is not automatically issued when you transfer ownership or deregister a vehicle. You must follow JPJ’s LKM cancellation and refund procedure.

How Much Road Tax Refund Can You Get?

The refund depends on the eligible remaining road tax fee and JPJ’s calculation. You should not expect to receive the full amount originally paid.

According to JPJ’s published procedure:

• The minimum refund amount is RM5.
• There is no minimum remaining validity period for an LKM that is still active.

For example:

• You renew your road tax for 12 months.
• You sell your car after using it for four months.
• Eight months remain before the road tax expires.
• You may apply for an LKM cancellation and refund, subject to JPJ’s calculation and approval.

The final amount may not match a simple calculation based on the number of unused months. JPJ determines the eligible refund amount.

You can check the official JPJ cancellation and refund procedure for the full requirements.

How to Apply for a Road Tax Refund After Selling Your Car

If you have sold your car, follow these steps to apply for the remaining eligible road tax fee.

1. Complete the Vehicle Ownership Transfer

Make sure the ownership transfer has been completed before applying for the refund.

Keep the relevant transaction documents, especially if you transferred ownership through MyEG, e-Auto or the JPJ Public Portal.

You may need:

• Proof of vehicle ownership transfer.
• Vehicle registration details.
• The original e-service receipt for an online ownership transfer.

JPJ’s published procedure requires the original e-service receipt for ownership transfers completed through these online services.

2. Prepare the Required Documents

You need to complete Form JPJ K6, which is used to apply for LKM cancellation and a refund.

Prepare the following documents according to your application:

Document	Purpose
Two copies of Form JPJ K6	Application for LKM cancellation and refund
Original identification document and a copy	To verify the registered owner’s identity
LKM refund details printed from MySIKAP	Supporting information for the refund
Bank statement or bank account details showing an active account number	To process the approved refund
Cancelled physical LKM disc, if one was issued	Required when you selected a physical disc during renewal
Original e-service receipt, if applicable	Required for online vehicle ownership transfers through MyEG, e-Auto or the JPJ Public Portal
Police report, if applicable	May replace the physical LKM disc for a vehicle involved in an accident, theft or natural disaster

If someone else submits the application on your behalf, you must also prepare:

• An authorisation letter from the registered owner.
• A copy of the registered owner’s identification document.
• The representative’s original identification document and a copy.

For a vehicle registered under a company or agency, an official authorisation letter on the organisation’s letterhead with its official stamp is required. Additional company or organisation documents may also be needed.

You can download the official JPJ K6 form before preparing your application.

3. Submit Your Application Through the Appropriate Channel

The submission channel depends on how your road tax was renewed. JPJ’s refund FAQ provides these instructions:

How you renewed your road tax	Where to submit the refund application
JPJ counter, kiosk or JPJ Mobile	Submit manually at a nearby JPJ branch
JPJ Public Portal or MyJPJ	Submit to JPJ’s Revenue Management Division through the SISPAA public complaints system
MyEG, Pos Malaysia or PUSPAKOM	Use the relevant service provider’s submission channel

There are also specific submission deadlines in JPJ’s published cancellation procedure:

• Online ownership transfer through MyEG, e-Auto or the JPJ Public Portal: Submit the cancelled physical LKM disc and original e-service receipt to JPJ within two working days after the ownership transfer. Supporting documents can be submitted within seven working days from the date the disc is submitted, at the same JPJ counter.
• Counter-based LKM cancellation: Submit the cancelled physical LKM disc on the same day and at the same counter where the cancellation is carried out. Supporting documents can be submitted within seven working days.

These disc-related requirements do not apply when no physical disc was issued under the eligible digital LKM arrangement. Check with JPJ or the relevant service provider to confirm the correct submission channel and deadline for your case.

4. Wait for JPJ to Review Your Application

After receiving your application and supporting documents, JPJ will review whether you qualify for a refund.

If approved, the eligible amount will be processed according to JPJ’s requirements. Make sure your bank account details are accurate and that the account is active.

Keep your application receipt and supporting documents for reference.

How to Apply for a Road Tax Refund When Deregistering a Car

If you are permanently removing your car from the road instead of selling it to another owner, you need to complete the relevant vehicle cancellation process before applying for an LKM refund.

This may apply if your car:

• Has been scrapped or disposed of.
• Is no longer roadworthy and will not be used again.
• Is being exported overseas.
• Is being permanently removed from use.

The general steps are:

1. Check the vehicle cancellation requirements. Confirm the procedure with JPJ based on whether the vehicle is being scrapped, exported or permanently removed from use.
2. Complete the required vehicle cancellation process. Submit the relevant documents and follow JPJ’s instructions.
3. Apply for the LKM refund. Complete Form JPJ K6 and prepare the required supporting documents.
4. Provide your bank account details. Make sure the account belongs to the registered owner and is active.
5. Wait for JPJ’s decision. Any refund is subject to eligibility and JPJ’s calculation.

JPJ’s K6 form includes the disposal of a vehicle that will no longer be used on the road as a reason for requesting an LKM refund.

However, a damaged vehicle does not automatically qualify. You should check the relevant disposal or cancellation requirements with JPJ before applying.

Can You Get a Road Tax Refund If You Use Digital Road Tax?

Yes. You can still apply for an LKM refund if you use digital road tax. However, whether you need to return a physical disc depends on the option you selected when renewing your road tax.

Under JPJ’s digital LKM rules:

• If you selected a physical LKM disc during renewal, you must return the cancelled disc when applying for a refund.
• If you selected digital LKM, you do not need to return a physical disc that was never issued.

This exception applies to private vehicles that renewed their LKM on or after 10 February 2023. Other vehicle categories remain subject to the existing procedures.

You must still provide the required application form, identification details, refund information and other supporting documents.

For more information, refer to JPJ’s official FAQ on LKM refunds.

Does Cancelling Road Tax Also Cancel Your Car Insurance?

No. Cancelling your road tax does not automatically cancel your car insurance.

Road tax and car insurance are separate. Even if JPJ approves your LKM cancellation and refund, your insurance policy may remain active until you arrange its cancellation with your insurer or takaful operator.

If you have sold or permanently deregistered your car, contact your insurance provider to check:

• Whether you can cancel the policy.
• Whether you qualify for an insurance premium refund.
• Which documents you need to provide.
• Whether any cancellation charges or conditions apply.

The amount and eligibility for an insurance refund depend on your policy terms and the insurer’s or takaful operator’s conditions.

If you are preparing to renew insurance for another vehicle, you can compare car insurance prices on BJAK and review the available coverage options.

Apply for Your Road Tax Refund Before Leaving It Unclaimed

If you sell or permanently deregister your car, you may be able to recover the eligible remaining road tax fee. However, JPJ will not issue the refund automatically. You must complete the relevant vehicle ownership transfer or cancellation process and submit a separate LKM refund application.

Prepare Form JPJ K6, your identification documents, refund details and any other supporting documents required for your case. Also, remember to contact your insurer separately if you want to cancel your car insurance and check whether you qualify for a refund.