What is Quit Rent (Cukai Tanah)?
Quit rent (Cukai Tanah) is a tax imposed on private properties.
It must be paid by the Owner to the State Authority via the Land Office and is payable in a full amount from the 1st January each year and will be in arrears from 1st June each year.
What is Assessment (Cukai Pintu or Cukai Taksiran)?
Assessment Rates (Cukai Pintu/Cukai Taksiran) is payable 2 times per year according to the legislation of the local authorities on properties located in areas under their jurisdiction as per the National Land Code 1966.
Why is the Assessment for (Cukai Pintu or Cukai Taksiran)?
This is because the taxes collected will be used to finance the maintenance cost of the city/region such as the cost of transporting the waste, cleaning gutters, beautify the landscape, pay bills street lighting, maintenance of signal lights and so on.
What if the property is not manned or is not generating any income?
Assessment (Cukai Pintu or Cukai Taksiran) will still be imposed although the property, building or house is empty (not occupied). However, the owner can apply for remission claims over the period of vacancy by giving written notice to the local authorities within seven (7) days from the date the building was vacated.
What would be the outcome if it is failed to pay for the Assessment (Cukai Pintu or Cukai Taksiran)?
If the Owner still failed to pay for the Assessment (Cukai Pintu or Cukai Taksiran) after receiving the Notice (Form E), an arrest warrant will be issued to the owner and the cost of warrants of 10% on the amount of tax arrears will be charged. The warrant authorizes the Municipal Council officials empowered to carry out the following actions:-
Depriving or confiscate loose item that is available in the building; or
Auction building or land by the registrant auctioneer appointed by the Municipal Council.
**Please note though that the FAQs do not constitute legal advice and as the situation remains fluid, the legal position may change in the near future.