Puteri Harbour Community

Dfiris said:

I mean the "friends" around me whom are small investors. The only ones whom declare and started reporting are those whom received audit letters from IRB. And often you got to pay penalties for the years you evaded paying. It all depends on how unlucky you are or how competent their computer systems and records are.

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IskandarRocks said:

I have heard from some of the established agents that Malaysia govt is now going after those who are not reporting income tax on property. They will find out if the tenancy agreement is stamped. Moreover, if one has a loan, after all of the eligible deductions, there is not much income tax left to pay. So it is not really worth trying to evade. I just filed my taxes and the following are eligible for deduction:

- Interest on Mortgage
- Property Maintenence
- Minor Repairs
- Property Taxes (Cukai Tanah and Cukai Harta)
- Agent Commission (Except for first time rental)
- Insurance

After all of the above deductions, my effective Income Tax was around 2% of the total rent.

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IskandarRocks said:

I have heard from some of the established agents that Malaysia govt is now going after those who are not reporting income tax on property. They will find out if the tenancy agreement is stamped. Moreover, if one has a loan, after all of the eligible deductions, there is not much income tax left to pay. So it is not really worth trying to evade. I just filed my taxes and the following are eligible for deduction:

- Interest on Mortgage
- Property Maintenence
- Minor Repairs
- Property Taxes (Cukai Tanah and Cukai Harta)
- Agent Commission (Except for first time rental)
- Insurance

After all of the above deductions, my effective Income Tax was around 2% of the total rent.

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Tekkun said:

It is a fact that IRB is going after the owners. My wife is one of them :(
They found out we have unreported 2 tenancy agreements that were stamped and gave us a letter asking for details. It is 3 years income minus the bank interests plus some minor repairs. Copies of bank statements and tenancy agrrements are required
Come up to be about 8% payable tax excluding another 10% for late submission.

So if you are renting out your premises, it is good to have a bank loan. I was lucky to have a fully flexible loan so it is deductible for the industrial property but for the residential one, no interests deducted as it is fully paid up.

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cybermad said:

hi Tekkun, If we had placed 100% of the purchase price in the bank under a full flexible loan, effectively there is no interest . Can still claim the implied interest for tax ?

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Tekkun said:

It is a fact that IRB is going after the owners. My wife is one of them :(
They found out we have unreported 2 tenancy agreements that were stamped and gave us a letter asking for details. It is 3 years income minus the bank interests plus some minor repairs. Copies of bank statements and tenancy agrrements are required
Come up to be about 8% payable tax excluding another 10% for late submission.

So if you are renting out your premises, it is good to have a bank loan. I was lucky to have a fully flexible loan so it is deductible for the industrial property but for the residential one, no interests deducted as it is fully paid up.

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Tekkun said:

There's always 2 bank statements, one for the loan and another for the current account. Both of them are different account number.
You show them the loan statement and hide the current account one

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Frodo said:

If I am reading correctly, you are saying that if we managed to rent out our JB condo/landed which we are also still paying monthly mortgage to the banks, we can take the gross rental received for the year and then deduct the interests paid on bank loan for the year, and the tax payable will just be on the net amount?

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Dfiris said:

Beauty of it in Malaysia is that you can lump the portfolio together for deductions, unlike Singapore, you k only apply the expenses of specific property to that property's rental revenue.

Advantage of this is you can time your major repairs or refurbishment of units in your portfolio to maximize tax advantages.

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IskandarRocks said:

Spot on.

Thats exactly what my tax consultant did. The first property was rented last year, hence the total rent in 2016 was full year and was higher than interest and other expenses for the year. Hence it attracted income tax. However, the second property was ready for rent in May end but was actually rented out in October. The 6 month interest and other expenses were higher than the 3 month rental. The tax consultant lumped the rent, interest and other expenses for 2 properties together which effectively resulted in tax savings on the first property.

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Investor888 said:

I am pleased that Celcom is moving into Puteri Harbour. Many more big names will follow suit. Huat ah!

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IskandarRocks said:

Spot on.

Thats exactly what my tax consultant did. The first property was rented last year, hence the total rent in 2016 was full year and was higher than interest and other expenses for the year. Hence it attracted income tax. However, the second property was ready for rent in May end but was actually rented out in October. The 6 month interest and other expenses were higher than the 3 month rental. The tax consultant lumped the rent, interest and other expenses for 2 properties together which effectively resulted in tax savings on the first property.

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Tekkun said:

Khazanah got so many companies...relocating offices nearer to Kota Iskandar Government offices is a logical move.

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btravelling said:

A lot of new pictures of Teega on skyscrapercity again, see the link.
The Suites tower (mine) with the commercial wing seem to be taking longer than the rest but I am in no rush.

Question to the group can I still be a SG PR and live in Malaysia or is there some minimal continual stay requirement in SG. I would still continue to work and cross to go to the office when needed, but official residence would be Malaysia, any restrictions with this? I can't find anything specific on line, I want to renew before I move.
http://www.skyscrapercity.com/showthread.php?t=1562739&page=9

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Tekkun said:

Khazanah got so many companies...relocating offices nearer to Kota Iskandar Government offices is a logical move.

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Investor888 said:

I am quite worried PH will be too crowded in 5 years time when the new JDT Mega stadium is completed. Imagine 50,000 of rowdy fans thronging Medini and PH alike before and after matches!

And all of you should bear in mind that JDT is now the Asia #01 Team and they play professional soccer with 5 digit fans attending unlike our Singapore Tampines Rovers or SAF Ah Guas FC where crowd attendance is 100+ or so.

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Investor888 said:

I am quite worried PH will be too crowded in 5 years time when the new JDT Mega stadium is completed. Imagine 50,000 of rowdy fans thronging Medini and PH alike before and after matches!

And all of you should bear in mind that JDT is now the Asia #01 Team and they play professional soccer with 5 digit fans attending unlike our Singapore Tampines Rovers or SAF Ah Guas FC where crowd attendance is 100+ or so.

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