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> Rental Income Tax, Rental Income Tax

StevenTeh1980
post Sep 24 2013, 10:41 AM, updated 6y ago

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How many of you actually declare your rental income when you file your taxes (resident and non-resident)?

In addition, I have the following questions:

1. When we file rental income tax, can we deduct the amount for maintenance fees, sinking fund, insurance and quit rent?

2. My sister work and live overseas. She is not a Malaysian tax resident and only comes back 2 weeks in a year. She has recently purchased a property in Bolehland and will rent it out to a close friend and her friend will deposit the monthly rent into her bank account in Bolehland. No lease agreement signed, just based on verbal agreement. Should she file her Malaysian tax return for the rental income as a non-resident??

This post has been edited by StevenTeh1980: Sep 24 2013, 10:42 AM
gark
post Sep 24 2013, 10:47 AM

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QUOTE(StevenTeh1980 @ Sep 24 2013, 10:41 AM)
How many of you actually declare your rental income when you file your taxes (resident and non-resident)?

In addition, I have the following questions:

1. When we file rental income tax, can we deduct the amount for  maintenance fees, sinking fund, insurance and quit rent?

2. My sister work and live overseas. She is not a Malaysian tax resident and only comes back 2 weeks in a year. She has recently purchased a property in Bolehland and will rent it out to a close friend and her friend will deposit the monthly rent into her bank account in Bolehland. No lease agreement signed, just based on verbal agreement. Should she file her Malaysian tax return for the rental income as a non-resident??
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1. Yes

2. Have to declare income under non resident, flat 25% tax, no personal deductibles
almeizer
post Sep 24 2013, 05:25 PM

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QUOTE(gark @ Sep 24 2013, 10:47 AM)
1. Yes

2. Have to declare income under non resident, flat 25% tax, no personal deductibles
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Gark, did you declare before? If you do, mind to share the following:

1) When declare through e-Filling, do we list down individual allowable expenditure or just sum everything less out with the gross rental for a year?

2) Interest on loan can be served as expenditure for deduction. How can we find out what is the interest on loan for the respective year?

3) If those expenditure without receipt, can we still use to deduct?

Anyway, my colleague found that it is 26% instead.

This post has been edited by almeizer: Sep 24 2013, 05:26 PM
EddyLB
post Sep 24 2013, 05:40 PM

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QUOTE(almeizer @ Sep 24 2013, 05:25 PM)
Gark, did you declare before? If you do, mind to share the following:

1) When declare through e-Filling, do we list down individual allowable expenditure or just sum everything less out with the gross rental for a year?

2) Interest on loan can be served as expenditure for deduction. How can we find out what is the interest on loan for the respective year?

3) If those expenditure without receipt, can we still use to deduct?

Anyway, my colleague found that it is 26% instead.
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1. Sum the nett

2. Bank statement

3. Alternatively show invoice and proof of payment
almeizer
post Sep 24 2013, 05:47 PM

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QUOTE(EddyLB @ Sep 24 2013, 05:40 PM)
1. Sum the nett

2. Bank statement

3. Alternatively show invoice and proof of payment
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Thanks Eddy, but the Bank Statement need to request from bank? My instalment paid through Auto-Debit every month.
EddyLB
post Sep 24 2013, 05:53 PM

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QUOTE(almeizer @ Sep 24 2013, 05:47 PM)
Thanks Eddy, but the Bank Statement need to request from bank? My instalment paid through Auto-Debit every month.
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Loan statement normally is bi yearly via mailmail. I receive mine in August and February usually. My other loans give statement every month via downloading. So depend on banks and type of loan
gark
post Sep 24 2013, 08:17 PM

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QUOTE(almeizer @ Sep 24 2013, 05:25 PM)
Gark, did you declare before? If you do, mind to share the following:

1) When declare through e-Filling, do we list down individual allowable expenditure or just sum everything less out with the gross rental for a year?

2) Interest on loan can be served as expenditure for deduction. How can we find out what is the interest on loan for the respective year?

3) If those expenditure without receipt, can we still use to deduct?

Anyway, my colleague found that it is 26% instead.
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1. Declare net income (gross rental-allowable expenses).

2. You will get your total interest expense from your loan statement (delivered to you from the bank)

3. No receipt/No proof/no voucher = no deduction

4. Non resident have to declare under Form M, yes it is 26%

This post has been edited by gark: Sep 24 2013, 08:20 PM
haicaramba
post Sep 24 2013, 08:48 PM

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No agreement signed & stamped, no need declare la.
No black & white, declare for what?

If reali so unlucky kena tangkap (which is super highly unlikely), just say your sister let her fren stay for free lo.
gark
post Sep 24 2013, 08:58 PM

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QUOTE(haicaramba @ Sep 24 2013, 08:48 PM)
No agreement signed & stamped, no need declare la.
No black & white, declare for what?

If reali so unlucky kena tangkap (which is super highly unlikely), just say your sister let her fren stay for free lo.
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We just advice what is according to law. smile.gif Not all will want circumvent the law. Some people are honest and some are not.

If an individual decides to break the law, it is their decision and if get caught will be their own consequences. wink.gif

This post has been edited by gark: Sep 24 2013, 09:02 PM
nothingz
post Sep 24 2013, 09:22 PM

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QUOTE(haicaramba @ Sep 24 2013, 08:48 PM)
No agreement signed & stamped, no need declare la.
No black & white, declare for what?

If reali so unlucky kena tangkap (which is super highly unlikely), just say your sister let her fren stay for free lo.
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maybe you don't know what is transfer pricing arrangement. if you say free then IRB will help you determine the market rate to assess the taxable income

as you have said, the chance of getting caught is actually very slim which is true too
EddyLB
post Sep 24 2013, 09:22 PM

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QUOTE(haicaramba @ Sep 24 2013, 08:48 PM)
No agreement signed & stamped, no need declare la.
No black & white, declare for what?

If reali so unlucky kena tangkap (which is super highly unlikely), just say your sister let her fren stay for free lo.
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Good luck if you are evading tax. Once you are in their blacklist, every 2 years you will be audited. When they want to be nasty, they will tax every penny out of you. They will look at all your expenses and disallow every receipt which is not claimable. And they will look at your spending and ask you to justify how you can afford. It is a real pain in the arxx biggrin.gif
wongmunkeong
post Sep 24 2013, 10:18 PM

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QUOTE(EddyLB @ Sep 24 2013, 09:22 PM)
Good luck if you are evading tax. Once you are in their blacklist, every 2 years you will be audited. When they want to be nasty, they will tax every penny out of you. They will look at all your expenses and disallow every receipt which is not claimable. And they will look at your spending and ask you to justify how you can afford. It is a real pain in the arxx  biggrin.gif
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Penny wise, pound foolish some folks prefer to be?
Dont mess with the Gov - they are more organized than organized crime. They are... THE GOV sweat.gif

This post has been edited by wongmunkeong: Sep 24 2013, 10:19 PM
Artus
post Sep 24 2013, 10:50 PM

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That's why we must implement the GST. Too many people are evading income taxes.
matthewctj
post Sep 24 2013, 10:51 PM

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For those who support the current Govt here in M'sia, please don't declare. If you are supporting for a change because you believe we need a cleaner Govt, then please do your duty and pay your taxes. What's the point of fighting for a change when the people themselves choose to falsely declare their income?
gark
post Sep 24 2013, 11:02 PM

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QUOTE(matthewctj @ Sep 24 2013, 10:51 PM)
For those who support the current Govt here in M'sia, please don't declare. If  you are supporting for a change because you believe we need a cleaner Govt, then please do your duty and pay your taxes. What's the point of fighting for a change when the people themselves choose to falsely declare their income?
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I vote for opposition yet i pay every single sen of tax, as long as i do my duty as a citizen. The government is just a political party, the country is what i pay to. If they misuse my money so be it, i can use the ballot box to voice my dissatisfaction.

This post has been edited by gark: Sep 24 2013, 11:04 PM
EddyLB
post Sep 25 2013, 12:36 AM

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QUOTE(gark @ Sep 24 2013, 11:02 PM)
I vote for opposition yet i pay every single sen of tax, as long as i do my duty as a citizen.  The government is just a political party, the country is what i pay to. If they misuse my money so be it, i can use the ballot box to voice my dissatisfaction.
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thumbup.gif

That is what I consider patriotic. Patriotic is not about flying flags. That is shallow thinking by some politicians
haicaramba
post Sep 25 2013, 09:16 AM

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QUOTE(EddyLB @ Sep 24 2013, 09:22 PM)
Good luck if you are evading tax. Once you are in their blacklist, every 2 years you will be audited. When they want to be nasty, they will tax every penny out of you. They will look at all your expenses and disallow every receipt which is not claimable. And they will look at your spending and ask you to justify how you can afford. It is a real pain in the arxx  biggrin.gif
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For someone like me who are being taxed peanuts so far, I'll take my chances with the taxman cool2.gif
The last time I get audited few years back, I was further refunded by them... hehehe...

Call me foolish, but I reali wanna c how efficient the taxman is in catching up with all those small fries for cases like tenancy w/o agreement (even those with agreements for that matters but never file for tax returns) or small enterprises with revenues below rm1 mil.
Coz so far from what I see around me (I only have small fries around me... hahaha), the taxman can definitely do wayyyyyyy better.

This post has been edited by haicaramba: Sep 25 2013, 09:22 AM
StevenTeh1980
post Sep 25 2013, 09:31 AM

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There may not be a tenancy agreement but what if LHDN check your bank account and see a consistent monthly amount that is being deposited into your bank account from the same person and this person is staying in a property under your name? These kind of info are not difficult to obtain.
haicaramba
post Sep 25 2013, 09:45 AM

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QUOTE(StevenTeh1980 @ Sep 25 2013, 09:31 AM)
There may not be a tenancy agreement but what if LHDN check your bank account and see a consistent monthly amount that is being deposited into your bank account from the same person and this person is staying in a property under your name? These kind of info are not difficult to obtain.
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Can bank into your acc, your mom's acc, dad's acc, occasionally go & collect cash, etc.

Be 'creative'.
yltoh
post Sep 25 2013, 11:06 PM

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QUOTE(matthewctj @ Sep 24 2013, 11:51 PM)
For those who support the current Govt here in M'sia, please don't declare. If  you are supporting for a change because you believe we need a cleaner Govt, then please do your duty and pay your taxes. What's the point of fighting for a change when the people themselves choose to falsely declare their income?
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thumbs up for this!

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