Receiving regular streams of rental income is definitely the most significant reward of being a landlord. This is especially true if you have already built one heck of a sizeable property portfolio yourself. 

When it comes to filing income tax, one of the key consideration is: ‘How do we file in rental income from letting out our properties in Malaysia?’. 

In the following webinar, Mr Teng Kong Yang, a qualified accountant shared:

  • The various types of tax submission form in Malaysia
  • What is statutory rental income?
  • Should you treat the payment from tenants as ‘rental income’ or ‘business income’? 
  • What are the expenses that I can use to deduct from my rental income? 
  • How do you declare rental income as a joint owner of a property
  • Personal tax planning (tax relief and documentation)

Assignment


KCLau
KCLau

Financial educator, author and trainer

    15 replies to "How to Compute and File Taxes for your Rental Income"

    • MAX TAN

      Where can I download the presentation slide? Thanks

      • KCLau

        We didn’t get the slides for this webinar. But we have the notes – check it out!

        • MAX TAN

          That’s great! Thanks

        • KEE SENG LIM

          Hi KC, where can I get the webinar notes?

          • KCLau

            The download link is below the full video. But only active paid PWM members can see it.

    • KEE SENG LIM

      Hi KC, the video is only 14.54 min? Where can I watch the full video?

      • KCLau

        Hi Kee Seng, your payment didn’t go through since 2014 October. So your account was cancelled already. That’s why you don’t see the full video.
        Please email us if you wish to continue your membership.

    • LOK CHEE CONG

      Hi,
      In the video it mention about once have the first rental income, then the expense can be deductible.
      May I know if we rent as per room basis, is that counted as well. For example I got 3 rooms, I rented out 1 room, 2 rooms empty, so my income unable to cover my instalment and other expenses, are those expenses deductible in tax as well?

      • KCLau

        I think it is treated proportionately – can use the sqf area to find the ratio.

    • Sivarajah Panjalingam

      Hi KC.
      I am a Malaysian living and working overseas. My income in Malaysia is from rental of properties and share dividends. Is there any way to minimize tax payments as the normal benefits and allowances granted to resident tax payer does not apply to non resident taxpayer and we get taxed at a flat rate of 26%.

      • KCLau

        For non-resident, you are right that there is no tax relief at all.
        – rental income: if you have properties with more loan, all the interest are deductible. So you can offset good rental yield property with low rental yield property (probably better appreciation like landed house). So the rental loss of one property can offset the rental income from others.
        – share dividend and capital gain is tax free in Malaysia, applicable to non-residents too.

    • K

      hi KC,
      i have a joint property which rented out – under my wife’s name. however the loan is taken under my name. Question :
      1. can the interest expense from loan be considered in the tax com for my wife despite the loan is under my name?
      2. if NO to question 1, can i declare the income under my name to offset the loan interest? despite my wife name on the tenancy agreement?
      thanks
      K

      • KCLau

        When the property is jointly owned, my accountant consider the rental and interest expenses as 50:50, regardless of the name on tenancy and mortgage.

    • Vin

      Hi KC

      Can i deduct the agent commission fees to get the second tenant after the first tenant moves out?

      • KCLau

        I think YES.

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