Rental Income Tax Malaysia 2019

The tenants are entitled to use the swimming pool tennis court and other facilities.

Rental income tax malaysia 2019. The landlord is an individual citizen who resides in malaysia and is the. Special relief of rm2 000 will be given to tax payers earning on income of up to rm8 000 per month aggregate income of up to rm96 000 annually. This relief is applicable for year assessment 2013 and 2015 only. These proposals will not become law until their enactment and may be amended in the course of their passage through.

To find out if your rental income can be exempted from income tax first you d need to know how it s calculated. The income is deemed as a business sources if maintenance services or support services are comprehensively and actively provided in relation to the real property. Individuals who own property situated in malaysia and receive rental income in return are subject to income tax. You must pay income tax on all types of income including income from your business or profession employment dividends interest discounts rent royalties premiums pensions annuities and others.

Inland revenue board of malaysia date of publication. If there s a rental loss you re not required to disclose that in your tax filings. For simplicity just remember that rental is in its own category and has its own progressive tax rate that ranges between 0 and 28. Any individual earning more than rm34 000 per annum or roughly rm2 833 33 per month after epf deductions has to register a tax file.

2019 and it. Such rental income is explained under section 4 d of the act. 19 december 2018 from the letting of the real property is charged to tax as rental income under paragraph 4 d of the ita. This booklet also incorporates in coloured italics the 2020 malaysian budget proposals announced on 11 october 2019 and the finance bill 2019.

This publication is a quick reference guide outlining malaysian tax information which is based on taxation laws and current practices. There s also an exemption of 50 on the statutory income of rental received by malaysian citizens who live in malaysia. Example 7 azrie owns 2 units of apartment and lets out those units to 2 tenants. Foreigners and those not residing within malaysia are also charged a flat 28 tax on rental income.