How do they works out the 26% tax? Assuming we rent out the place for 2k, how much would the 26% be?
I am interested cos I am thinking of renting out my unit and see whether it is worth the effort or not.
Can deduct your costs...like agent fee, property & quit tax, insurance, maintenance, etc and most importantly your loan interests payment.
A 500k loan for 25yrs would have interest of about RM21k.
Assuming a rental of RM2500 x 11 months, revenue is RM27500.
so if we have other cost of say RM3000 per year, then the profit is about RM3500....which results in an official tax of RM910.
I suppose if you stamp the rental agreement, then there's a record and authorities can trace if they want. (But do they ? Experienced bros ?)
But if you don't stamp the agreement, you run the risk that the tenant can play punk.
Take the RM910 tax as insurance maybe.
Correct if I'm wrong, if we retire in Malaysia but have >1 properties and thus collecting rental income, we are taxed at resident rate instead on non resident. Resident rate means its tiered rate rather than fixed at 26%.