Property tax in Malaysia

Explanation for Property Taxes

Property tax is payable on all property including residential, shops, factories and agricultural land. There are few property taxes in Malaysia referring to the following:

Assessment Fee

Assessment fee as known as Cukai Taksiran, which is based on the annual rental value of a property. It is determinded by local authorities and is payable in two instalments annually.

Quit Rent

Quit rent is the land tax imposed on owners of qualifying properties by the respective state governments. This payment has traditionally been charged to the Joint Management Body (JMB) of these buildings, who pass on the costs through maintenance fees.

Stamp Duty (Sale and Rent)

Stamp Duty is a tax when purchasing/renting a property, it must be paid on the Memorandum of Transfer. Stamp duty is based on the purchase/rental price. Please refer Stamp Duty for more.

RPGT

Real Property Gains Tax (RGPT) is a form of Capital Gains Tax that owners have to pay when disposing of their property in Malaysia. Therefore, it means that when you decide to sell your property, you have to pay taxes on the profit if you have any. Please refer RPGT for more.

Income Tax (for Rental)

Rental income tax is a tax imposed upon profit that you make from renting out properties. The rental income commencement date starts on the first day the property is rented out