{"id":38006,"date":"2019-04-16T11:15:00","date_gmt":"2019-04-16T03:15:00","guid":{"rendered":"https:\/\/www.imoney.my\/articles\/?p=38006"},"modified":"2019-04-22T10:11:10","modified_gmt":"2019-04-22T02:11:10","slug":"remember-to-claim-your-rental-income-tax-exemption","status":"publish","type":"post","link":"https:\/\/www.imoney.my\/articles\/remember-to-claim-your-rental-income-tax-exemption","title":{"rendered":"Remember To Claim Your Rental Income Tax Exemption"},"content":{"rendered":"

In Budget 2018, the government introduced a new limited time tax exemption designed to control home rental prices. Now, in 2019, the time has come for property owners to begin claiming that exemption on their income tax forms.<\/p>\n

The idea is that income from the renting of residential properties would receive a 50% exemption from income tax. This was introduced in Section 4(d) of the Income Tax Act 1967 (ITA).<\/p>\n

The legalese gets complicated, so let\u2019s break down what this all means and how it affects you.<\/p>\n

<\/span>What is rental income tax?<\/span><\/h2>\n

At the core, this refers to any money you make from renting out properties. Some Malaysians have been mistakenly reporting this as investment income (and claiming it as tax exempt), and have been penalised by the Inland Revenue Board for doing so.<\/p>\n

In other words, it\u2019s listed on your income tax forms under \u201cStatutory income from rents\u201d for e-filing and part B2 (BE form)\/B7 (B form) for manual filing.<\/p>\n

For simplicity, just remember that rental is in its own category and has its own progressive tax rate that ranges between 0 and 28%. Foreigners and those not residing within Malaysia are also charged a flat 28% tax on rental income.<\/p>\n

<\/span>What about the income tax exemption?<\/span><\/h2>\n

To take advantage of this, there are some requirements to meet:<\/p>\n

The property is of the residential type. Apartment, flat, landed, or anything otherwise legally designated as residential.<\/p>\n