Easy to refer. How to declare our rental income.

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This is for owners who have rental income but is not so sure how to declare it for Year of Assessment 2018. What are the possible deductions? Are all expenses on the units deductible as well? There’s no need to guess… The below is a very easy to understand image and excel sheet from Ms. Jessica Jong. She’s a mortgage management consultant, coach, trainer and speaker. I have attended her session. She shares a lot of important things we should know about mortgage and how to save more interests. Let’s read what she says.

Income from renting out residential homes is given a 50% income tax exemption provided it meets the following conditions:

i) The landlord is an individual citizen who resides in Malaysia and is the registered proprietor of his residential property;

ii) The amount of rental per month received from each residential property does not exceed RM2,000;

iii) The tenancy agreement between the landlord and the tenant which has been executed and stamped comes into effect on or after 1 January 2018; and

iv) The residential property is rented out for any period from 1 January 2018 to 31 December 2018.

Recently my friends asked me on how to declare their rental income for YA2018. You may refer to my answers below if you do have the same questions ya.

Q1️⃣: What if I rent out more than one unit of residential property?

✅A: If the landlord receives rent from more than one residential property, each residential property is treated as a separate source of rental.

Note: One of the conditions to be eligible for this 50% tax exemption is – the amount of rental per month received from each residential property cannot exceed RM2,000

Q2️⃣: How should I file the rental income?

✅A: The landlord who is granted an exemption under subparagraph 3(1) of the Order shall maintain separate accounts for the rent received from each residential property.

SOURCE: INCOME TAX (EXEMPTION)(NO.2) ORDER 2019 [P.U. (A) 55/2019]

To help you understand better, I have prepared a sample on How to calculate on your rental income (refer to the picture below).

If you find this post is useful, feel free to SHARE to your friends 😄

#DeclareRentalIncome
#HowToCalculateRentalIncomeYA2018

Follow my FB Page here : Mortgage Management


You may also download an excel file here too for easy calculations by yourself! Visit her FB page and say thank you yeah. Thank you Jessica.

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