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.
" ExpatGo welcomes and encourages comments, input, and divergent opinions. However, we kindly request that you use suitable language in your comments, and refrain from any sort of personal attack, hate speech, or disparaging rhetoric. Comments not in line with this are subject to removal from the site. "
Creative Graduates Future Secured with Cult Creative
With the Future List 2021 event by Cult Creative, creative graduates can ease nerves of transitioning into the working world! This inaugural...
Snubbed by Government, Award-Winning Malaysian Songstress Lyia Meta Earns International Recognition
As more Malaysians look overseas to make a name for themselves, the country is steadily losing its once-celebrated concept of true diversity...
Join The French School (LFKL) Virtual Open Day!
The French School (LFKL) is organizing a Virtual Open Day on Tuesday 16 November 2021 at 6pm. The LFKL opened its new...
Malaysia Reaps the Rewards as Nation’s Vaccination Rates Continue to Impress
The country’s soaring ranks of the fully vaccinated have led to a sharply downward trend in all Covid metrics and, for most,...
Feeling Like a Fraud? You Might Have Imposter Syndrome
Do you have repeated thoughts at work that suggest you don’t do enough? If you answered yes, this might be for you....
Petrifying ‘Squid Game’ Doll Has Landed in Sunway Pyramid and is Ready to Play!
Are you brave enough to try? You might stand a chance at winning some cool prizes! Garnering some 111 million views within...
Still-Active WWII-Era Mortar Bomb Found in Quiet Perak Village
The residents of Sungai Tapah will have something to talk about for quite a while after all the unexpected excitement! The sleepy...
Why Are MM2Hers Being Treated Like This?
The outrageous manner in which MM2H visa holders have been treated lately certainly raised a number of questions. Unfortunately, answers seem to...
Hard Rock Hotel Leads the Way with Its 22nd Annual Pinktober Campaign
The iconic brand’s hotel in Desaru Coast, Johor, has kicked off its yearly campaign to support awareness and research for breast cancer....
A Tale of Two Countries: Different Journeys, Same Destination
Neighbouring countries Malaysia and Singapore have had wildly divergent experiences with the Covid-19 pandemic, and have reacted in ways almost as different....