Hi,

I could do with some advice on which direction i should go.

Basically, I own 3 properties which is providing me rental income every month. I will move into one of them in maybe next year.

My problem is, i don't pay any income tax for the rental income and am worried that the LHDN will come knocking one day. I've ask friends on advice on how to minimize the rental income tax and most of them advice to open a company and park all properties in them. Any advice???

Thanks in advance for the advice.

I learned from a magazine.........." Rental income derived from the property is taxable. As a non-resident individual buyer, the taxable rental income is subject to a flat rate of 28 per cent. In the case of a company owning the property, the allowable deduction rate is 25 per cent. If the company owns more than THREE properties, it is then entitled to full deduction on property-related expenses against the rental income."........

Now my question is what,s the basis of this 28 percent income Tax ? How it works or calculate ?

I am a non resident & individual foreign buyer entered in KL property sector since 2008. Currently dealing with 4 non landed properties ( not yet rented ).

Can anyone advise me, how should i proceed to enjoy more Tax incentives or full deduction on Rental income Tax.

hi. i suggest the best thing to do is to acquire proper advice from the legal and conveyancing experts who are well versed in these matters. if you so wish please susan at 016 3371893 or email azmanjoseph@yahoo.com for clarification and advice. if you have any queries about renting out or selling your properties please contact tom at 016 6264883 or email tomtom181@hotmail.com. regards. tom thomas

khaled

most things are tax deductible. repair costs. interest. estate agency fees. etc...

the funny thing is that the malaysian tax website does not make it clear. but here is something i found that you might find useful. it's by pwc, a big accounting company.

http://www.pwc.com/extweb/pwcpublications.nsf/docid/FA76857A5513A709482574BE002DDDE0

Kalai, do you know if the recent budgets and stuff have meant any changes in the last few months. i thought it was 27% tax now.

Rental income is income you earn from renting property that you own or have use of. You can own property by yourself or with someone else. Rental income includes income from renting a house, apartments, rooms, space in an office building, or other real or movable property.

Rental income is income you earn from renting property that you own or have use of. You can own property by yourself or with someone else. Rental income includes income from renting a house, apartments, rooms, space in an office building, or other real or movable property.