What is Quit Rent (Cukai Tanah)?
Quit Rent (Cukai Tanah) is a tax imposed on private properties. It must be paid by the landlord to the State Authority via the Land Office and is payable in full amount from 1st January each year and will be in arrears from 1st June each year. The bill is yellow in colour.
What is Assessment Rates (Cukai Pintu or Cukai Taksiran)?
Assessment Rates (Cukai Pintu or Cukai Taksiran) is payable 2 times per year according to the legislation of the local or municipal authorities on properties located in areas under their jurisdiction, as per the National Land Code 1966. The bill is blue in colour.
Why is it required to pay for the Assessment Rates (Cukai Pintu or Cukai Taksiran)?
This is because the taxes collected will be used to finance the maintenance cost of the city / region, such as the cost of transporting waste, cleaning gutters, beautify the landscape, pay bills street lighting, maintenance of signal lights and so on.
How Assessment Rates (Cukai Pintu or Cukai Taksiran) is calculated?
The annual value of the Assessment Rates (Cukai Pintu or Cukai Taksiran) is calculated based on the market valuation of the property. Annual Value is the "estimated gross annual rent" gained by the landlord / property owner:
Annual Value = Estimated gross rent per month x 12 months.
(The percentage is set by the state)
Hence, Assessment = Percentage of Annual Value x Rate
For Example:
Annual value = RM5,000
Percentage rate = 8.8%
Assessment = RM440.00 per year or RM220.00 for every 6 months
What if the property is not manned or is not generating any income?
Assessment Rates (Cukai Pintu or Cukai Taksiran) will still be imposed although the property, building or house is empty (not occupied). However, the owner can apply for remission claims over the period of vacancy by giving written notice to the local or municipal authorities within seven (7) days from the date the building was vacated.
What would be the outcome if it is failed to pay for the Assessment Rates (Cukai Pintu or Cukai Taksiran)?
If it is still failed to pay for the Assessment Rates (Cukai Pintu) after receiving the Notice (Form E), an arrest warrant will be issued to the owner and the cost of warrants of 10% on the amount of tax arrears will be charged. The warrant authorizes the Municipal Council officials empowered to carry out the following actions:
a) Depriving or confiscate loose item that are available in the building.
b) Auction building or land by the registrant auctioneer appointed by the municipal council.
