Global Property Guide

Financial Information for Residential Property Buyers


Tax Example: Rent

Last Updated: March 31, 2016

Non-resident couple's rental income1
Monthly Rental Income2 1,500 6,000 12,000
Annual Rental Income 18,000 72,000 144,000
Less: Expenses3 20% 3,600 14,400 28,800
= Taxable Income 14,400 57,600 115,200
Income Tax 4
Flat rate 20% 3,600 14,400 28,800
Annual Income Tax Due 3,600 14,400 28,800
Tax Due as % of Gross Income 20.00% 20.00% 20.00%
Thanks to:


Notes


1 The property is jointly owned by husband and wife, but then taxed separately (50% upon each partner).

2 Exchange rate used: 1.00 US$ = 4.00 MYR

3 Estimated values. Income-generating expenses such as quit rent, assessment, repairs and maintenance, fire insurance, service charge, sinking fund, and management fees are deductible.

4 Rental income earned by nonresident individuals is taxed at a flat rate of 25%.

Comments

Mozzie | November 27, 2011

Hi There, the exchange rate is not out to date.

1 Exchange rate used: US$1 = RM4.4849

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