Real estate agents’ fees in Malaysia
Real estate agent’s fees are regulated by the Board of Valuers, Appraisers and Estate Agents Malaysia (LLPEH). A maximum commission of up to 3% is paid either by buyer or seller, subject to a minimum fee of RM1,000 per case.
Real Property Gains Tax
Real property gains tax (RGPT) is charged on chargeable gains arising from the disposal of real property as well as shares in the real property companies based on following guidelines:
[*Individual of non-citizen includes all expatriates working in Malaysia and MM2H visa holders]
The 2014 Budget introduced significant changes to the Real Property Gains Tax schedule, aimed largely towards discouraging “flipping” properties in a bid to curb soaring property prices. As such, there are a few exemptions of Real Property Gains Tax:
i. Gains derived from disposal of property between parents and children, husband and wife, grandparents and grandchildren;
ii. Exemption of up to RM10,000 or 10% of the net gains, whichever is higher, is given to an individual.
The chargeable gain is only applicable on net gains, after deducting all related costs such as renovation costs, commission and incidental cost such as legal fees and exemption.
Minimum Foreign Investment Value (MFIV) for Residential Property
Is rental income of foreigners subject to tax in Malaysia?
All rental incomes derived from Malaysia are subject to tax. While a lot of foreigners find Malaysian properties attractive, it is very important to know the tax rate to avoid any unpleasant moment when the Inland Revenue slams you with a hefty tax bill to pay.
Tax on rental income for foreigners charged by Malaysia Inland Revenue differs by the status of resident or non-resident in Malaysia. Resident status is for someone who stayed in Malaysia for more than 182 days (about six months) in a calendar year. Currently, Malaysia Taxation on rental income under the personal name will be as follows:
• Resident status for foreigners: 0 to 25%
• Non-resident status for foreigners: flat at 25%
Malaysia tax rate on rental income for foreigners does not take account of the type of visa pass. There is no special advantage for a holder of MM2H visa compared to the Expatriate Work Visa group.
48 Hours in Hanoi – Where to Go, What to Eat
Taking a stroll in Hanoi, whether during the day or night, is a thrill in itself, as all aspects of the local...
5 Great Reasons to Observe Earth Hour on Saturday, 25th March 2017
Join millions of fellow Earth citizens this weekend to raise awareness on climate action and take another step towards saving our planet...
Check Out These 7 Hidden Gems in Malaysia
Here’s our pick of hidden gems in Malaysia, places which are not commonly found in a tourist’s checklist
Why AirAsia’s ‘new’ baggage allowance isn’t new – and isn’t just AirAsia’s
AirAsia has reiterated that passengers are allowed to bring one cabin bag and one small bag on board, and the combined weight...
Disney USA Prevails in Malaysian ‘Beauty and the Beast’ Controversy
In the end, all it amounted to was a two-week delay over this ‘moment of gay.’
1.9KFood & Drink
6 Foods You Have to Try at a Malaysian Night Market
For a truly Malaysian experience, one of the best ways to sample authentic local food is at a night market, known as...
7.1KBusiness and Finance
7 Money-Saving Tips for International Students in Malaysia
Travelling and living in Malaysia generally are quite affordable. However, as a student you will always be always searching for ways to...
Aiyo! Texting with Malaysians, Translated
In every culture, language is a living thing. Over time, it changes, it grows, phrases slip in or out of fashion, the...
5.0KCulture & Religion
Protecting the past: Is enough being done to preserve Malaysia’s heritage?
Malaysia may be a relatively young country, but it is a treasure trove of cultural heritage. Past colonisers brought in more than...
2.5KBusiness and Finance
The Tortoise and the Hare: Winning the Career Development Race
While a straight line may be the shortest distance between two points, successful careers rarely progress in such fashion