Income tax on rent, worked example, in Malaysia
Taxation Researcher | February 04, 2019
| 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 | 28% | 4,032 | 16,128 | 32,256 |
| Annual Income Tax Due | 4,032 | 16,128 | 32,256 | |
| Tax Due as % of Gross Income | 22.40% | 22.40% | 22.40% | |
Thanks to:  |
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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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