DIY Landlord - Taxes

As a DIY landlord, you need to observe 3 types of taxes. They are the cukai pintu and cukai tanah.

Cukai Pintu refers to the Accessment Rate. They are sometimes also referred to as Cukai Taksiran.
Cukai Tanah refers to the Quit Rent. It is a taxed based on the land itself. This form of tax is paid twice a year.

Cukai Pintu is paid to the local council. For example, for PJ citizens, your cukai pintu is payable to MBPJ (Majlis Perbandaran Petaling Jaya) aka Petaling, for Subang Jaya dudes, cukai pintu is payable to MBSJ (Majlis Perbandaran Subang Jaya) . This tax is paid once a year. This tax is levied for them to maintain their area of jurisdiction. Ever wondered where the money comes from grass cutting, rubbish collection etc...

Cukai Tanah is paid to the state government. This tax is levied to maintain the state government activities. Cukai Tanah depends on the value of the land. The higher the land price, the higher this tax will be. At the time of writing, Selangor, Wilayah Persekutuan and Penang yields the most amount of tax for the respective states. That is why it was a big loss to the ruling party when Selangor fell to the
hands of the state government, the ruling party basically lost a golden goose.

Cukai Pintu can be paid via
  • online using Maybank2u 
  •  post offices 
  •  local council

Cukai Tanah can be paid via
  • online via state government website (eg. for Selangor, use hasil.selangor.gov.my) 

There is a final tax which needs to be paid which is the profit on rentals. This form of tax is declared in your yearly LHDN (income tax) form.