Quit Rent (Cukai Tanah)

What Is Quit Rent ?

Quit Rent, known as Cukai Tanah, is a land tax charged to property owners by state governments in Malaysia. The Land Office, or Pejabat Tanah dan Galian (PTG), assesses the property's land value and bills the owner annually. This tax is a recurring charge that must be paid yearly for the duration of property ownership, most states have a cut-off date of 31 May.

How Much Quit Rent Do I Have To Pay ?

Property Size x Quit Rent Rate = Amount Needed to Pay
The chargeable rate varies from different states and property type
_{(Eg. 2000 Square Feet * 0.035 = RM70 per Year)}

Generally, It is not likely for a typical property to pay more than RM150 year.

Where To Pay ?

The fastest and easier way is to pay online

• At PTG counters, you can make payments for quit rent in cash, credit or debit cards, and bank drafts. For a complete list of locations, refer to the main PTGS website. 

POS Malaysia

• https://www.posonline.com.my/PosOnline.Web.Portal/PaymentStatic/NewList/2

Parcel Rent

What Is Parcel Rent ?

Parcel Rent, known as Cukai Petak, is a tax similar to Quit Rent but is specifically for strata property owners. Strata properties, such as apartments, condominiums, or townhouses. (usually properties that are not landed)

How Much Parcel Rent Do I Have To Pay ?

Consider a scenario where an apartment building is segmented into 10 equal-sized units, each spanning 1,000 sq ft, making up a total area of 10,000 sq ft. Previously, with quit rent set at RM0.05 per sq ft, the total amount for the building was RM500, divided equally among the owners, resulting in each paying RM50 annually.

Under the new parcel rent system, however, this calculation changes significantly. Now, each owner is responsible for the rent of their individual parcel's entire sq ft. Consequently, for the same building, each parcel owner is now liable to pay RM500 annually, a substantial increase from the previous amount.

Where To Pay ?

The payment process for Parcel Rent is the same as that for Quit Rent.

Assessment

What Is Assessment ?

The assessment rate, also known as (Cukai Pintu or Cukai Taksiran), is a local tax collected by councils for infrastructure and service maintenance. This tax funds services like maintenance of street lighting, public park, regular waste collection, and other tasks such as maintaining public toilets and fixing potholes, contributing to the overall maintenance of the local area.

In Malaysia, assessment rates must be paid by all property owners, whether the property is used for residential, commercial, or industrial purposes. Property owners are responsible for these rates even if they rent out their property, as tenants are not liable for them. Usually paid twice per year

How Much Assessment Do I Have To Pay ?

Assessment rates in Malaysia are determined based on your property's estimated annual rental value. Local authorities charge a percentage of this value, typically around 4% for residential properties. The rate varies with property type; for instance, a smaller flat incurs lower rates than a landed bungalow.

For example, a property with an estimated annual rental value of RM 36,000 (RM 3000 x 12) would result in an annual assessment rate of RM 1,440, typically divided into two payments of RM 720 each. Payment deadlines can vary but are often at the end of February and August.

Where to Pay ?

The fastest and easier way is to pay online. Due to quite a number of different local council, listing it might be very long and confusing for you. Simple search for your local council + assessment / cukai taksiran. Example attached picture above simple search “Majlis Sepang cukai taksiran” and you will get your answer !

What Happen If I Don’t Pay Any Of It ?

Not paying quit rent, parcel rent, or assessment rates in Malaysia can lead to severe consequences. This includes receiving a notice for unpaid dues with added penalty charges, possible arrest, seizure and auction of the property in question. Although some may sound ridiculous but realistically, you will most likely get a penalty charges on top of the fee due.

Summary

Quit Rent

• Pay once a year, with cut off date at end of May

• Property Size x Quit Rent Rate = Amount Needed to Pay
  The chargeable rate varies from different states and property type
  _{(Eg. 2000 Square Feet * 0.035 = RM70 per Year)}

• Payment via Online 

Parcel Rent

• Basically the same as Quit Rent.

Assessment

• Pay twice a year, with cut off date at end of February and August

• Annual rental rate x 4% = Amount Needed to Pay
  The chargeable rate varies from different states and property type
  _{(Eg. RM 2500 per month * 12 months * 4 % / 2= RM 600 per 6 months)}

• Payment via Online or Bank Draft