All You Need to Know About Cukai Tanah:
A Guide to Quit Rent in Malaysia

Have you recently moved to a new home? Are you puzzled by the different types of government taxes you have to pay just for owning a house? If you answered YES to all those questions, then your next question should be: “Bro, cukai tanah tu apa?” 

When you own a property, it’s not just about housing loans and utility bills, you’ll have to spare some money for tax payments as well – quit rent being one of them. Quit rent, or cukai tanah, is essentially land tax charged by the government for locals who own a land or a property.

 

What’s the diff: Quit rent vs. parcel rent?

First things first, let’s get our basics right: quit rent is cukai tanah and parcel rent is cukai petak.

But what is cukai petak? Well, parcel rent is the equivalent of quit rent for strata properties – this includes high-rise properties (apartments, condos) or certain landed properties (townhouses) that share common facilities such swimming pools and gyms.

In the past, quit rent was charged to the strata property’s Joint Management Body (JMB) and is later collected from the residences via maintenance fees. However, this system has been abolished in June 2018, and has been replaced with the current parcel tax which is charged directly to the homeowners.

 

How do I calculate quit rent?

So, how much money are we really looking at? Truth is, the charges vary according to how big your house is and which state you live in. You can calculate your quit rent with the following formula:

Quit rent = Property size x State rate

The rates differ in each state, depending on the property type and its location. 

For instance, the rates will be much higher if your house is located right smack in the middle of KL city compared to living in the quaint town in the east coast of Terengganu.

 

Where do I check my quit rent?

In this digital age, everything’s available online – even your tax details!  

You don’t have to rummage through a sea of documents anymore – checking your quit rent amount is just a few clicks away via your state’s Pejabat Tanah Galian webpage.

Different states have varied web portal logins, but most of them will require your land title ID (ID Hakmilik tanah), lot number, or account number details.

 

Where do I pay quit rent?

The one thing we love the most about technology is the beauty of being able to do things remotely on the go – from shopping and running errands, to paying your cukai tanah.

Quit rent payment can be made both online and physically, depending on where you live:

Physical payments

Pejabat Tanah Galian branches in each respective state
Local district councils
Post offices

Online payments

Wilayah Persekutuan Kuala Lumpur, Putrajaya & Labuan
Selangor
Perlis
Kedah
Penang
Perak
Kelantan
Terengganu
Pahang
Negeri Sembilan
Melaka
Johor
Sabah
Sarawak

 

And if I don’t pay quit rent?

Each time you get your paycheck, you should first get your bills and taxes out of the way before getting those dope new kicks from Nike (Wipe that drool off your chin now, soldier). Because if you don’t pay on time, you’ll land yourself in a VERY sticky situation, my friend.

The first time you miss a payment, you’ll probably be let off the hook with just a notice and a penalty. But if you go rogue and continue to miss your due dates, you can face jailtime if the state issues a warrant of arrest against you, and you’ll be charged an additional 10% fee for the warrant. A court action can be taken against you and the state will confiscate your land, which will then be put up for public auction.

 

Breaking Bad doesn’t sound too exciting now, does it? Trust us, you DO NOT want to go there. Keep tab of your bills and taxes! For more info on other hidden costs you need to know when purchasing a house and tips on buying a home, head over to our blog page for a quick read!

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