Puteri Harbour Community

[IskandarRocks]

I mean the "friends" around me whom are small investors. The only ones whom declare and started reporting are those whom received audit letters from IRB. And often you got to pay penalties for the years you evaded paying. It all depends on how unlucky you are or how competent their computer systems and records are.

I have heard from some of the established agents that Malaysia govt is now going after those who are not reporting income tax on property. They will find out if the tenancy agreement is stamped. Moreover, if one has a loan, after all of the eligible deductions, there is not much income tax left to pay. So it is not really worth trying to evade. I just filed my taxes and the following are eligible for deduction:

- Interest on Mortgage
- Property Maintenence
- Minor Repairs
- Property Taxes (Cukai Tanah and Cukai Harta)
- Agent Commission (Except for first time rental)
- Insurance

After all of the above deductions, my effective Income Tax was around 2% of the total rent.

 

[Dfiris]

I have heard from some of the established agents that Malaysia govt is now going after those who are not reporting income tax on property. They will find out if the tenancy agreement is stamped. Moreover, if one has a loan, after all of the eligible deductions, there is not much income tax left to pay. So it is not really worth trying to evade. I just filed my taxes and the following are eligible for deduction:

- Interest on Mortgage
- Property Maintenence
- Minor Repairs
- Property Taxes (Cukai Tanah and Cukai Harta)
- Agent Commission (Except for first time rental)
- Insurance

After all of the above deductions, my effective Income Tax was around 2% of the total rent.

Beauty of it in Malaysia is that you can lump the portfolio together for deductions, unlike Singapore, you k only apply the expenses of specific property to that property's rental revenue.

Advantage of this is you can time your major repairs or refurbishment of units in your portfolio to maximize tax advantages.

 

[Tekkun]

I have heard from some of the established agents that Malaysia govt is now going after those who are not reporting income tax on property. They will find out if the tenancy agreement is stamped. Moreover, if one has a loan, after all of the eligible deductions, there is not much income tax left to pay. So it is not really worth trying to evade. I just filed my taxes and the following are eligible for deduction:

- Interest on Mortgage
- Property Maintenence
- Minor Repairs
- Property Taxes (Cukai Tanah and Cukai Harta)
- Agent Commission (Except for first time rental)
- Insurance

After all of the above deductions, my effective Income Tax was around 2% of the total rent.

It is a fact that IRB is going after the owners. My wife is one of them :(
They found out we have unreported 2 tenancy agreements that were stamped and gave us a letter asking for details. It is 3 years income minus the bank interests plus some minor repairs. Copies of bank statements and tenancy agrrements are required
Come up to be about 8% payable tax excluding another 10% for late submission.

So if you are renting out your premises, it is good to have a bank loan. I was lucky to have a fully flexible loan so it is deductible for the industrial property but for the residential one, no interests deducted as it is fully paid up.

 

[cybermad]

It is a fact that IRB is going after the owners. My wife is one of them :(
They found out we have unreported 2 tenancy agreements that were stamped and gave us a letter asking for details. It is 3 years income minus the bank interests plus some minor repairs. Copies of bank statements and tenancy agrrements are required
Come up to be about 8% payable tax excluding another 10% for late submission.

So if you are renting out your premises, it is good to have a bank loan. I was lucky to have a fully flexible loan so it is deductible for the industrial property but for the residential one, no interests deducted as it is fully paid up.

hi Tekkun, If we had placed 100% of the purchase price in the bank under a full flexible loan, effectively there is no interest . Can still claim the implied interest for tax ?

 

[Tekkun]

hi Tekkun, If we had placed 100% of the purchase price in the bank under a full flexible loan, effectively there is no interest . Can still claim the implied interest for tax ?

There's always 2 bank statements, one for the loan and another for the current account. Both of them are different account number.
You show them the loan statement and hide the current account one

 

[Frodo]

It is a fact that IRB is going after the owners. My wife is one of them :(
They found out we have unreported 2 tenancy agreements that were stamped and gave us a letter asking for details. It is 3 years income minus the bank interests plus some minor repairs. Copies of bank statements and tenancy agrrements are required
Come up to be about 8% payable tax excluding another 10% for late submission.

So if you are renting out your premises, it is good to have a bank loan. I was lucky to have a fully flexible loan so it is deductible for the industrial property but for the residential one, no interests deducted as it is fully paid up.

If I am reading correctly, you are saying that if we managed to rent out our JB condo/landed which we are also still paying monthly mortgage to the banks, we can take the gross rental received for the year and then deduct the interests paid on bank loan for the year, and the tax payable will just be on the net amount?

 

[cybermad]

There's always 2 bank statements, one for the loan and another for the current account. Both of them are different account number.
You show them the loan statement and hide the current account one

Thanks pal

 

[Tekkun]

If I am reading correctly, you are saying that if we managed to rent out our JB condo/landed which we are also still paying monthly mortgage to the banks, we can take the gross rental received for the year and then deduct the interests paid on bank loan for the year, and the tax payable will just be on the net amount?

Yes. You can also minus off council taxes eg cukai pintu and cukai tanah too plus some reasonable repairs. For Singaporeans, not so heavy but for Malaysians, this is considered as part of our income, thus added to the overall income taxable.

 

[IskandarRocks]

Beauty of it in Malaysia is that you can lump the portfolio together for deductions, unlike Singapore, you k only apply the expenses of specific property to that property's rental revenue.

Advantage of this is you can time your major repairs or refurbishment of units in your portfolio to maximize tax advantages.

Spot on.

Thats exactly what my tax consultant did. The first property was rented last year, hence the total rent in 2016 was full year and was higher than interest and other expenses for the year. Hence it attracted income tax. However, the second property was ready for rent in May end but was actually rented out in October. The 6 month interest and other expenses were higher than the 3 month rental. The tax consultant lumped the rent, interest and other expenses for 2 properties together which effectively resulted in tax savings on the first property.

 

[kawan2sgmy]

Legal fees relating to your house purchase are deductible from your profits if you intend to sell away your property in future. So pls remember to keep the lawyers invoice and receipts properly.

 

[kawan2sgmy]

During the first few years, I too engaged a tax consultant for a fee of about RM200 or so. Subsequently, I filed the tax forms myself, just follow the format and input the figures for the past year.

Spot on.

Thats exactly what my tax consultant did. The first property was rented last year, hence the total rent in 2016 was full year and was higher than interest and other expenses for the year. Hence it attracted income tax. However, the second property was ready for rent in May end but was actually rented out in October. The 6 month interest and other expenses were higher than the 3 month rental. The tax consultant lumped the rent, interest and other expenses for 2 properties together which effectively resulted in tax savings on the first property.

 

[btravelling]

A lot of new pictures of Teega on skyscrapercity again, see the link.
The Suites tower (mine) with the commercial wing seem to be taking longer than the rest but I am in no rush.

Question to the group can I still be a SG PR and live in Malaysia or is there some minimal continual stay requirement in SG. I would still continue to work and cross to go to the office when needed, but official residence would be Malaysia, any restrictions with this? I can't find anything specific on line, I want to renew before I move.
http://www.skyscrapercity.com/showthread.php?t=1562739&page=9

 

[Investor888]

I am pleased that Celcom is moving into Puteri Harbour. Many more big names will follow suit. Huat ah!

 

[Tekkun]

I am pleased that Celcom is moving into Puteri Harbour. Many more big names will follow suit. Huat ah!

Khazanah got so many companies...relocating offices nearer to Kota Iskandar Government offices is a logical move.

 

[SikitSikit]

Thanks all for your kind replies and advice.

I have rented out a ppty in KL for last 3-4 years, but have not filed tax return on the rental income...due to oversight as i did not receive any tax forms even though the tenancy agreement was stamped.

The net rent after deducting loan interest and expenses would be negligible. Is it ok for me to submit a report now for all the past 3-4 years? Anyone can recommend a reliable tax consultant pls? thanks

Spot on.

Thats exactly what my tax consultant did. The first property was rented last year, hence the total rent in 2016 was full year and was higher than interest and other expenses for the year. Hence it attracted income tax. However, the second property was ready for rent in May end but was actually rented out in October. The 6 month interest and other expenses were higher than the 3 month rental. The tax consultant lumped the rent, interest and other expenses for 2 properties together which effectively resulted in tax savings on the first property.

 

[cybermad]

Khazanah got so many companies...relocating offices nearer to Kota Iskandar Government offices is a logical move.

many big companies likely to move to PH to be near Kota Iskander for convenience and prestige

 

[menghuii]

A lot of new pictures of Teega on skyscrapercity again, see the link.
The Suites tower (mine) with the commercial wing seem to be taking longer than the rest but I am in no rush.

Question to the group can I still be a SG PR and live in Malaysia or is there some minimal continual stay requirement in SG. I would still continue to work and cross to go to the office when needed, but official residence would be Malaysia, any restrictions with this? I can't find anything specific on line, I want to renew before I move.
http://www.skyscrapercity.com/showthread.php?t=1562739&page=9

u need to hv a reentry permit it seems

https://www.ica.gov.sg/page.aspx?pageid=152

 

[Investor888]

I am quite worried PH will be too crowded in 5 years time when the new JDT Mega stadium is completed. Imagine 50,000 of rowdy fans thronging Medini and PH alike before and after matches!

And all of you should bear in mind that JDT is now the Asia #01 Team and they play professional soccer with 5 digit fans attending unlike our Singapore Tampines Rovers or SAF Ah Guas FC where crowd attendance is 100+ or so.

Khazanah got so many companies...relocating offices nearer to Kota Iskandar Government offices is a logical move.

 

[cybermad]

I am quite worried PH will be too crowded in 5 years time when the new JDT Mega stadium is completed. Imagine 50,000 of rowdy fans thronging Medini and PH alike before and after matches!

And all of you should bear in mind that JDT is now the Asia #01 Team and they play professional soccer with 5 digit fans attending unlike our Singapore Tampines Rovers or SAF Ah Guas FC where crowd attendance is 100+ or so.

hi, where is the JDT stadium ?

 

[sgcount]

I am quite worried PH will be too crowded in 5 years time when the new JDT Mega stadium is completed. Imagine 50,000 of rowdy fans thronging Medini and PH alike before and after matches!

And all of you should bear in mind that JDT is now the Asia #01 Team and they play professional soccer with 5 digit fans attending unlike our Singapore Tampines Rovers or SAF Ah Guas FC where crowd attendance is 100+ or so.

I thought crowds are good. Then can have more businesses and the whole place lively instead of being quiet. Anyway, the matches are not played every day?