Property taxes in Malaysia are levied on the ownership, transfer, and use of property. Each type of property tax has its own unique characteristics, such as the type of property it is imposed on, the rate of taxation, and the frequency of payment.

For anyone who is an existing homeowner or looking to buy a new home, we have compiled a handy list of the different types of property taxes in Malaysia with references on detailed explanations of their key features and how they are calculated.

1.0 Memorandum of Transfer

Memorandum of Transfer refers to the legal document used to transfer ownership of a property from the seller to the buyer. It is a crucial part of property transactions in Malaysia and often involves specific taxes and fees.

2.0 SPA Stamp Duty

SPA Stamp Duty stands for Sales and Purchase Agreement Stamp Duty. It is a tax levied on the agreement made between the property buyer and seller. This tax is paid based on the property's purchase price, and it is a mandatory part of property transactions.

3.0 LA Stamp Duty (Loan Agreement)

LA Stamp Duty is a tax applied to the legal agreements associated with property loans. This duty is levied on the agreements made between borrowers and lending institutions (banks), typically calculated based on the loan amount.

4.0 Quit Rent (Cukai Tanah)

Quit Rent, known as "Cukai Tanah" in Malaysia, is an annual tax levied by the state government on landowners. It is typically a modest fee for the right to hold land and varies depending on the type and location of the property.

5.0 Parcel Rent (Cukai Petak)

Parcel Rent, or "Cukai Petak," is a specific form of land tax applicable to property developments with individual parcels or lots (strata title). This tax is levied based on the size and value of each parcel within a development.

6.0 Assessment Rates (Cukai Taksiran / Cukai Pintu)

Assessment Rates, known as "Cukai Taksiran" or "Cukai Pintu," are property taxes collected by local authorities (usually municipal councils). They are based on the estimated annual rental value of a property and are used to fund local services and infrastructure.

7.0 Real Property Gain Tax (RPGT)

Real Property Gain Tax, often abbreviated as RPGT, is a capital gains tax imposed on profits earned from the disposal of real property. This tax is payable by property sellers and is calculated based on the property's market value and the holding period.

8.0 Rental Income Tax

Rental Income Tax is a tax levied on the rental income earned by property owners and landlords. It is part of the individual's taxable income and is subject to Malaysia's income tax regulations.

Disclaimer: The following information is provided solely for general knowledge. DWG Malaysia Sdn Bhd assumes no responsibility or liability for the information's accuracy, adequacy, or reliability. This includes any warranties or representations regarding the suitability of the information for any specific purpose to the maximum extent allowed by law. While every reasonable effort has been made to ensure the information's accuracy, reliability, and completeness at the time of writing, it should not be solely relied upon for making financial, investment, real estate, or legal decisions. It is strongly recommended to seek advice from a qualified professional who can consider your individual circumstances and provide personalized guidance. DWG Malaysia Sdn Bhd disclaims all liability for any actions taken based on the information provided.

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