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> 50% Tax Exemption for Rental Income (2018-2020), from budget 2018...hope still applicable

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TSAskarPerang
post Mar 2 2019, 02:42 PM

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https://www.malaysiakini.com/letters/466227


TSAskarPerang
post Mar 4 2019, 11:09 PM

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TSAskarPerang
post Mar 5 2019, 09:29 PM

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tehoice
post Mar 15 2019, 11:23 AM

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On the 50% gross income discount declaration. how does it work?

Scenario as follows:

Assuming monthly rental RM1,000

total rental collected is RM12,000

Apply 50% discount to the rental becomes RM6,000

(Less) interest payment, say RM2,000
(Less) maintenance fees, sinking fund etc, say RM2000
(Less) fire insurance, etc, say RM150.

So my total chargeable income from rental will be

RM6,000
(RM2,000)
(RM2,000)
(RM150)

= RM1,850

is my understanding correct?
utellme
post Mar 15 2019, 03:23 PM

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QUOTE(tehoice @ Mar 15 2019, 11:23 AM)
On the 50% gross income discount declaration. how does it work?

Scenario as follows:

Assuming monthly rental RM1,000

total rental collected is RM12,000

Apply 50% discount to the rental becomes RM6,000

(Less) interest payment, say RM2,000
(Less) maintenance fees, sinking fund etc, say RM2000
(Less) fire insurance, etc, say RM150.

So my total chargeable income from rental will be

RM6,000
(RM2,000)
(RM2,000)
(RM150)

= RM1,850

is my understanding correct?
*
it should be

RM 12000 - (RM2000 + RM2000 + RM150) = RM7850 X 50% discount = RM3925*

tehoice
post Mar 15 2019, 04:56 PM

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QUOTE(AskarPerang @ Mar 5 2019, 09:29 PM)

*
QUOTE(utellme @ Mar 15 2019, 03:23 PM)
it should be

RM 12000 - (RM2000 + RM2000 + RM150) = RM7850  X 50% discount  = RM3925*
*
if according to the facebook post, then your calculation is right.
tehoice
post Mar 15 2019, 04:58 PM

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QUOTE(AskarPerang @ Feb 14 2019, 12:57 AM)
Refer: https://dnh.com.my/budget-2018-tax-exemptio...-rental-income/

The criteria to qualify for this tax exemption are:

- Rental income received by Malaysian resident individuals not exceeding RM2,000 per month for each residential home
        Comment: The exemption is not restricted to just one residential property, but as many properties as the individual owns.

- Residential home must be rented under a legal tenancy agreement between owner and the tenant;
        Comment: Written tenancy agreements (as opposed to equitable tenancies) are essential to claiming this exemption, with a fair assumption that the tenancy agreement should be duly stamped in order to qualify.
   
- Tax exemption is given for a maximum period of 3 consecutive years of assessment from 2018 to 2020.



Income Tax Act 1967, refer: https://kickmeaway.blogspot.com/2018/11/ren...income-tax.html

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)


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.

LHDN HK-4 Form: http://lampiran2.hasil.gov.my/pdf/pdfam/HK4_2016_1.pdf

Example:



Do take note that 50% exemption is from the gross rental income (not nett income after minus all the miscellaneous cost)

p/s: Just sharing info taken from others. To be sure, please refer your tax consultant or direct with LHDN. Cheers.
*
but what about this? it says do take note that 50% exemption is from the gross rental income wor. (not nett income after minus all the miscellaneous cost)
so if follow this, then you should multiply 50% for the rental collected first then only start deducting all miscellaneous cost right?
okuribito
post Mar 18 2019, 06:38 PM

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user posted image

The exemption is at the statutory income stage ie 50% of ( 100% of the income less 100% of the allowed expenses )


nookie188
post Mar 19 2019, 09:10 AM

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Let me try summarize and if wrong, i stand corrected

1) 50% exemption on nett income for

i) tenancy agreement signed in 2018 and must be stamped

ii) Monthly rent RM2000 and below

iii) Residential only

iv) exemption valid for 3 years from 2018
ngph988
post Mar 19 2019, 10:28 AM

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Padahal, nobody care about rental income to be declared in Borang B/BE
iamkid
post Mar 19 2019, 10:42 PM

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If stamp tenancy this year 2019, can get 50%? (for this 2019 declaration)
iamkid
post Mar 19 2019, 10:46 PM

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QUOTE(nookie188 @ Mar 19 2019, 09:10 AM)
Let me try summarize and if wrong, i stand corrected

1) 50% exemption on nett income for

i) tenancy agreement signed in 2018 and must be stamped

ii) Monthly rent RM2000 and below

iii) Residential only

iv) exemption valid for 3 years from 2018
*
No IV, source from? gazettement din say right
brandonkl
post Mar 30 2019, 02:04 AM

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Example: After deducting all rental income deductible expenses, say my net take home from my rental income is RM36,000 per year or RM3,000 per month.

Gross Monthly Rental Income : RM4,000
Allowed Monthly Deductible Expenses : RM1,000

So when I declare my rental income when I file my tax online is RM 12,000 for 2018? (RM2,000 exempted, so RM1,000 x 12 mths)

This post has been edited by brandonkl: Mar 30 2019, 02:12 AM
nookie188
post Mar 30 2019, 09:51 AM

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QUOTE(brandonkl @ Mar 30 2019, 02:04 AM)
Example: After deducting all rental income deductible expenses, say my net take home from my rental income is RM36,000 per year or RM3,000 per month.

Gross Monthly Rental Income : RM4,000
Allowed Monthly Deductible Expenses : RM1,000

So when I declare my rental income when I file my tax online is RM 12,000 for 2018? (RM2,000 exempted, so RM1,000 x 12 mths)
*
max monthly rental income (gross) that are exempted is capped at 2K ..so if 3k , you cant apply for 50%
AgentVIDIC
post Apr 14 2019, 01:01 AM

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Hi, i read somewhere that tenancy agreement must be sign after 1st Jan 2018 then only can apply the 50% exemption, anyone can confirm this?

Also, if my interest per month is RM3K and rental is RM1.5K, in this case i no need to fill in the rental income in BE?
bkpliew
post Apr 14 2019, 07:36 PM

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from FB post:


50% tax exemption for property rental below RM2000

Income from renting out residential homes is given a 50% income tax exemption provided it meets the following conditions:

i) The landlord is an individual citizen who resides in Malaysia and is the registered proprietor of his residential property;

ii) The amount of rental per month received from each residential property does not exceed RM2,000;

iii) The tenancy agreement between the landlord and the tenant which has been executed and stamped comes into effect on or after 1 January 2018; and

iv) The residential property is rented out for any period from 1 January 2018 to 31 December 2018.


user posted image
mk92
post Apr 20 2019, 09:01 AM

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Hi everyone,

I am new here.
How can i view the bank interest for my property loan?

Let's said my property house loan is 450,000 and the bank interest is 4.5% for 30 years.

How does the calculation works here?

Thanks

TSAskarPerang
post Apr 20 2019, 09:13 AM

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QUOTE(mk92 @ Apr 20 2019, 09:01 AM)
Hi everyone,

I am new here.
How can i view the bank interest for my property loan?

Let's said my property house loan is 450,000 and the bank interest is 4.5% for 30 years.

How does the calculation works here?

Thanks
*
You need to obtain the yearly statement from the bank. Some bank will mail it to you after 31 Dec. From there, you will know the repayment, how much amount going to interest portion.
mk92
post Apr 22 2019, 01:30 PM

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QUOTE(AskarPerang @ Apr 20 2019, 09:13 AM)
You need to obtain the yearly statement from the bank. Some bank will mail it to you after 31 Dec. From there, you will know the repayment, how much amount going to interest portion.
*
Thanks bro for the reply.

Assuming monthly rental RM1,900

total rental collected for Oct to Dec 2018 is RM5,700

(Less) interest payment, say RM4,550
(Less) maintenance fees, sinking fund etc, say RM900
(Less) fire insurance, etc, say RM50.

So my total chargeable income from rental will be

RM5,700
(RM5,500)

= RM200

With the 50% tax exemption, does it means the chargeable income tax for rental will be Rm100 to be declared?


halofujima
post Apr 23 2019, 05:05 PM

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..

This post has been edited by halofujima: Apr 23 2019, 05:06 PM

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