Below, we explain (in simple terms) 4 of the most common property-related taxes in Malaysia.
1. QUIT RENT
- An annual land tax imposed on property owners by respective state governments.
- Also known as 'Cukai Tanah'.
- For stratified properties, the quit rent was replaced by a land tax called the parcel rent or 'Cukai Petak'.
2. ASSESSMENT TAX
- Also known as 'Cukai Pintu'.
- Assessment tax collected is used to fund the maintenance of your locality's infrastructure and services.
3. STAMP DUTY
- When purchasing a property, stamp duty is payable on the Instrument of Transfer.
- If a loan is taken to finance the purchase, stamp duty is payable on the loan documentation.
4. REAL PROPERTY GAIN TAX ('RPGT')
- RPGT is imposed on gains (profit) made on the disposal of real property.
- With effect from 1 January 2022, RPGT is no longer imposed on disposal of properties by individual owners (who are Malaysian citizens or permanent residents) in the 6th year of ownership and beyond.
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Originally published 04 August 2022
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.