How to Submit Rental Income for LHDN Malaysia

Submitting Rental Income for Lembaga Hasil Dalam Negeri (LHDN)

Rental Properties Malaysia: Income Tax Act 1967

Are you a property investor? Are you an owner of a few properties rented out?

Expenditure allowable for deductions from the rental income of a taxable property are as the following:

• Assessment tax  (cukai taksiran or cukai pintu)
• Quit rent (cukai tanah)
• Interest on borrowings/loans
• Fire insurance premium
• Rental collection expenses
• Legal expenses incurred to enforce rental collection
• Rental renewal expense (tenancy agreement, property agent)
• Repair expenses 
• Property service charges (maintenance fee, sinking fund, Indah Water)

Initial expenses are not allowed for deductions from rental income of real estate where spending is used to create this source of income. For example, the cost of getting the first tenant such as advertising costs, legal costs to make rental agreements, stamp duty and commissions to real estate agents are not eligible.

The following is an example of calculation.

Based on HK-4 Form from LHDN

GROSS RENTAL INCOME	RM2000x12 = RM24000
Allowable expenses
Interest expense (loan)	-RM1250 x12 =Rm15000 (instalment RM1650)
Tax Assessment / Door Tax	-RM130
Quit Rent	-RM30
Insurance
Repair and maintenance
Renewal of rental agreement
Indah Water	-RM30x4 = RM120
Maintenance fee, sinking, guard house
STATUTORY RENTAL INCOME	RM8720
50% off rental income	-RM4360
TAXABLE INCOME	RM4360

Reference:

PENDAPATAN DARIPADA SEWAAN HARTA TANAH KETETAPAN UMUM NO. 4/2011
PENDAPATAN DARIPADA SEWAAN HARTA TANAH KETETAPAN UMUM NO. 12/2018
http://lampiran1.hasil.gov.my/pdf/pdfam/KU_12_2018.pdf

Rental Properties Malaysia: Income Tax Act 1967

Income obtained from letting properties is taxable under the paragraph 4(a) of Income Tax Act 1967 (ITA). These includes rental from commercial properties, houses, shoplots, apartments, factories, office and etc. 

Failure to declare the income may be subjected to penalty based on the provisions under ITA 1967.

Many people have rental income when they are retired in their golden age. Some people have rental properties as part of their wealth creation or a way to achieve financial freedom or retire young. Hence, declaration of income must be made even if you only have one source of income from rental properties.

In order to declare rental income in LHDN, a stamped tenancy agreement should be made available. Note that, this document is also an important proof of income for bankers if you are planning to buy another property.

CIMB Secret Recipe 2018 Free Cake with RM50 spend

Get one COMPLIMENTARY slice of cake when you spend minimum RM50 with CIMB debit, credit or prepaid card at Secret Recipe!

Terms & Conditions

• Payment must be made with a CIMB Bank debit, credit or prepaid card.
• CIMB Bank debit, credit or prepaid card must be presented upon ordering to pre-empt staff on the promotion redemption.
• Limited to one (1) redemption per card/visit.
• No splitting of bills or tables is allowed.
• *Valid for a la carte dine-in only, at all Secret Recipe outlets excluding KLIA, PGIA, Subang Skypark, KTIA, PPUM, Medini Mall, AEON Mall Taiping and Kuching International Airport.
• *Not valid for redemption of Premium Range cakes, Brownies and Chocolate Lava.
• Promotion is not valid with other ongoing promotions, offers, set meals, discounts, vouchers or privilege cards.
• Promotion is valid from 15 August 2018 until 31 July 2019.

Sale & Service Tax (SST) 2.0 for Credit Cards 2018

RM25 will be charged for each credit cards and its supplementary card.

Service tax will be imposed on new credit card approved from September 1 onwards.

For existing credit cards, it will be charged during anniversary of card (together with annual fees)

Debit card will not be charged SST of RM25.

Its time to review the credit cards you are holding. If you are not using, you may cancel before anniversary.

However, it is worth keeping some credit cards

• for use during purchasing of big items ($$$$)
• to get cash back ($$$)
• to create good credit score for loans
• to get special privilege (eg. access airport lounge)
• special discount for food, hotel (credit card usually better discount compared to debit card)
• and many more!

Its just RM25 per card, easily get back from the benefits offered. Annual fees are mostly waived :)

Nando's Malaysia Mother's Days Promo: Buy 3 free 1

#nandosbelanja

Buy 3 sets of the ¼ chicken with 2 sides, and get 1 set of ¼ chicken with 2 sides on us for your Mum! Just flash your member ID to request upon ordering.

Terms & Conditions:
Valid from 5 – 13 May 2018 only.
Multiple redemptions allowed in a single receipt.
Valid for dine-in only at all Nando's Malaysia restaurants.
Valid for all Nando's Malaysia members only.

Free Stamp Duty Fee for First House Malaysia

Starting January 1, 2017, First Home Worth Under RM300k Exempt Stamp Duty. Stamp duty involved in the purchase of property - Stamp Duty for The Transfer of Property AND Loan Agreement.

Both the stamp duty will be imposed by your SPA lawyer and Loan lawyer respectively. It is important to inform your lawyers regarding your first residential home purchase so that they can quote the correct legals for you.

For house under RM300,000 - Stamp duty will be waived if you purchase a residential property for the first time.

For house from RM300,000.01 to RM500,000 - The first 300k stamp duty will be waived and buyer is required to pay for the remaining stamp duty amount.

Example of Property Stamp Duty for RM400,000 property.

Instead of having to pay RM7000, you only have to pay RM2000 stamp duty because the first RM300000 stamp duty is RM5000 will be waived.

Selling price/market value of the property (whichever is higher)   :			RM
First RM 100,000	: RM 100,000	1%	RM : 1,000
RM 100,001 to 500,000	: RM 300,000	2%	RM : 6,000
RM 500,001 and above	: RM 0	3%	RM : 0
	-------------------		----------------
Total	: RM 400,000		RM: 7,000
Exemption                                                                             -RM 5,000
Total Stamp Duty Payable     =============================>			RM : 2,000

Example of Loan Agreement Stamp Duty for RM400,000 property.

Loan amount of RM360k (assuming 90% loan), you only have to pay RM300 stamp duty instead of RM1800.

Loan Amount                                                   :			RM
Any Amount	: RM 360,000	0.5%	RM : 1,800
Exemption			-RM1,500
Total Stamp Duty Payable     ===============================>			RM : 300

Buy your first house today and use your advantage!

Lazada 6th Birthday 2018 Malaysia Promo Codes

Promotion period is from 25 April 2018 to 27 April 2018

CIMB Lazada Prepaid Mastercard
BDCP16 (app)
- Discount of 16% with maximum discount capped at RM20 on the total nett purchase price of your purchase(s) in a single transaction (not inclusive of shipping/courier charges) made using the LAZADA App.
-BDCP14 (website)
-Discount of 14% with maximum discount capped at RM18 on the total nett purchase price of your purchase(s) in a single transaction (not inclusive of shipping/courier charges) made online in LAZADA website

Standard Chart: Lazada Birthday Treats! Get 11% off when you shop on Lazada Mobile App with yr credit card on 25-27 April 18. Use promo code: BDSC11. TC apply

Hong Leong: Enjoy 11% OFF for your Lazada in-app purchase(s) when you pay with Hong Leong Credit/Debit Card. (Application Promo Code: BDHLB11)
-capped at RM15 per transaction per Cardholder

BInfinite: Enjoy 12% off with BDBI12
-capped at RM15 per transaction per user

Public bank: 11% off with  BDPB11
-capped at RM15

More to be revealed soon