中文 · Bahasa Melayu · Bahasa Indonesia
By Jason Lim, REN 84424 · IQI Realty · Checked on 15 November 2026
This guide is for landlords who own a home in Johor Bahru or elsewhere in Malaysia but are not Malaysian tax residents, from owners living in Singapore, Indonesia, India or China to Malaysians working abroad. The short answer: rent from a Malaysian property is Malaysian income, so Malaysia taxes it. As a non-resident individual you pay a flat 30% on the net rent after allowable expenses, with no personal reliefs, and you file Form M each year. Your tenant generally does not deduct tax from the rent; declaring and paying it is your job.
Quick answer
- Rate: a flat 30% of chargeable income for non-resident individuals, the rate LHDN lists for every year from YA2020 to YA2025, with no personal reliefs and no tax reductions.
- On net rent: the same expenses residents deduct apply to you: assessment, quit rent, loan interest, fire insurance, ordinary repairs, rent collection and tenancy renewal costs (Public Ruling 12/2018).
- Residence goes by days: under 182 days in Malaysia in a calendar year usually makes you non-resident, whatever your passport (Income Tax Act 1967, s.7).
- No withholding on home rent: LHDN’s withholding tax categories cover rent for moveable property, not houses or condos, so the landlord files and pays.
- Filing: register for a tax number on e-Daftar, then file Form M (e-M on MyTax). Keep records for 7 years.
- Selling later: the buyer’s lawyer holds back 7% of the price for RPGT if you are not a Malaysian citizen or PR, and 3% if you are (LHDN, June 2026).
General information, not tax, legal or financial advice. Confirm your own position with LHDN or a licensed tax agent before you file.
Who counts as a non-resident landlord
Malaysian tax residence is decided for each calendar year by physical presence, not citizenship. Under section 7 of the Income Tax Act 1967 you are generally resident if you are in Malaysia for 182 days or more in the year, and LHDN’s Public Ruling No. 11/2017 says any part of a day counts as a full day. Other tests can make you resident with fewer days, such as stays linked across two years. If none fits, you are non-resident for that year.
| Your situation | Usual status | Check |
|---|---|---|
| You live in Singapore, Jakarta, Mumbai or Shanghai and let your JB condo | Non-resident | Count your visit days; regular weekend stays add up |
| Malaysian citizen working abroad for the whole year | Usually non-resident | The year you leave can still count as resident |
| MM2H participant living in JB a few months a year | Often non-resident | MM2H is an immigration status, not a tax status |
| You live in JB and commute to Singapore | Usually resident | Rent is then taxed at resident rates; see my guide for resident landlords |
My guide to the 182-day tax residency rule goes through each test with JB examples.
How rent is taxed: 30% on the net amount
Rent from a home in Johor is Malaysian income whoever owns it. For a non-resident, the net rent is taxed at one flat rate from the first ringgit:
| Non-resident individual | Resident individual | |
|---|---|---|
| Tax rate | Flat 30% of chargeable income (YA2020 to YA2025; 28% for YA2016 to YA2019) | Scale rates from 0% to 30% (YA2025) |
| Personal reliefs | None | Yes, including the individual relief |
| RM400 tax reduction for low incomes | No | If chargeable income is RM35,000 or less |
| Allowable letting expenses | Yes, same list | Yes |
| Return form | Form M (e-M) | Form BE, or Form B with business income |
Budget 2027 (9 October 2026) proposed lower resident bands and a RM12,000 individual relief (Bernama). The report said nothing about the non-resident rate, and proposals apply only once the Finance Bill passes.
What you can deduct
Non-residents use the same rules as residents, set out in LHDN’s Public Ruling No. 12/2018, Income from Letting of Real Property (19 December 2018). For ordinary letting, only expenses on the ruling’s list are allowed:
| Deductible | Not deductible |
|---|---|
| Assessment (cukai taksiran) and quit rent (cukai tanah) | Costs of getting your first tenant: advertising, legal fees, stamp duty, agent’s commission |
| Interest on the loan used to buy the property (not the principal) | Renovations, improvements and first-time furnishing |
| Fire insurance on the property | Costs before the home was first let |
| Rent collection costs, including a property manager’s collection fee | Periods when you use the home yourself |
| Costs of renewing a tenancy or changing tenants | Personal reliefs of any kind |
| Ordinary repairs; replacing worn furniture and fittings in a furnished let |
A point non-residents often miss: housing loan interest relief is a personal relief, so you cannot claim it, but interest on a loan used to buy a let property is a letting expense, which you can deduct against the rent. My rental income tax guide covers each item in more depth. If you run short stays with cleaning and guest services, the income may be treated as a business instead; see short-stay rental rules in JB.
An illustration
Invented figures, not a real unit or a rent forecast. A non-resident owner lets a JB condo for a full year:
| Item | With a loan (RM a year) | Bought in cash (RM a year) |
|---|---|---|
| Rent received (RM4,000 x 12) | 48,000 | 48,000 |
| Less assessment and quit rent | (2,400) | (2,400) |
| Less loan interest | (24,000) | 0 |
| Less fire insurance | (500) | (500) |
| Less ordinary repairs | (1,500) | (1,500) |
| Less agent’s fee for renewing the tenancy | (2,000) | (2,000) |
| Chargeable rental income | 17,600 | 41,600 |
| Tax at 30% | 5,280 | 12,480 |
Had the same owner been resident with no other Malaysian income, the RM9,000 individual relief would cut RM17,600 to RM8,600, tax at YA2025 rates would be RM36, and the RM400 tax reduction would bring it to nil. To see how much of an instalment is interest, use my home loan calculator.
Does the tenant withhold tax from the rent?
Generally, no. LHDN’s withholding tax leaflet ties withholding on payments to non-residents to specific classes: interest, royalties, certain services, and rent for the use of moveable property under section 109B. Rent for land or buildings is not on that list. Section 109F covers “other gains or profits” under section 4(f) of the Act, while rent falls under section 4(d).
So your tenant pays the full rent, and you declare it on Form M. If a corporate tenant proposes to withhold, ask which section they rely on and check with a tax agent. See also tenant screening.
Letting your JB home from overseas?
Tell me the project and when it is available. I’ll find and screen tenants, prepare the tenancy and keep the rent and expense records your tax agent needs for Form M.
WhatsApp JasonRegistering, filing Form M and paying from abroad
- Get a tax number (TIN). Non-citizens who are not permanent residents register through e-Daftar on the MyTax portal with a passport copy, according to LHDN’s individual FAQ. Since 3 November 2025, non-citizens aged 18 or over with an NFC-enabled passport can also register in the MyTax mobile app (Navigasi HASiL 2026).
- File Form M each year you have Malaysian rent. On MyTax it appears as e-M. Joint owners each file for their own share, usually in line with their shares on the title; see joint names and tenancy in common.
- Pay the tax. LHDN’s FAQ lists telegraphic transfer, interbank giro and electronic fund transfer for taxpayers abroad, alongside its online ByrHASiL channel. Keep the bank slips.
- Keep records for 7 years. LHDN asks for records to be kept for seven years from the end of the year the return is filed. My list of property documents to keep helps.
Deadlines and penalties
LHDN sets filing dates each year in its Return Form Filing Programme (the 2026 edition was updated on 1 April 2026). Residents file by 30 April, or 30 June with business income, with a short extra window for e-Filing. LHDN’s expatriate slides (March 2023) listed Form M as due by 30 June. Check the current programme on MyTax; filing by 30 April removes any doubt.
- Late filing. LHDN’s slides show penalties of 15% of the tax payable if up to 12 months late, 30% for 12 to 24 months and 45% for 24 to 36 months.
- Late payment. Tax unpaid after the due date can be increased by 10% under section 103 of the Act.
- Travel restriction. Under section 104, LHDN can ask the Immigration Department to stop people with unpaid tax from leaving Malaysia. In September 2024 LHDN reminded taxpayers to check their status before travelling (The Star).
Many owners abroad use a licensed Malaysian tax agent. Larger landlords should also check e-Invoice rules for landlords.
Your home country may tax the rent too
What your home country does depends on its own law and its tax treaty with Malaysia:
- Singapore. Article 6 of the Malaysia–Singapore tax agreement (signed 5 October 2004) lets Malaysia tax income from immovable property in Malaysia, and Article 23 deals with credit for that tax. IRAS’s e-Tax Guide (30 January 2026) says foreign-sourced income received in Singapore by resident individuals has been exempt since 1 January 2004, except through a Singapore partnership. See Singapore tax on JB rental income.
- Other countries. Each treaty and home tax system treats rent and credits differently, so owners from Indonesia, India, China and elsewhere should ask a home-country adviser. For UK and Australian owners, see UK and Australian expats buying in Malaysia.
Keep LHDN’s payment receipts as proof of the Malaysian tax.
Leaving Malaysia, coming back and selling
Leaving. If you are an employee leaving Malaysia for more than three months, your employer files Form CP21 at least 30 days before you go, through e-SPC on MyTax (LHDN, updated September 2026). From the first full year abroad your rent usually moves to Form M at 30%. My guide to leaving Malaysia as a property owner covers this, and remember to update your address with LHDN; see changing your address after moving.
Coming back. Moving to JB late in a year and staying on can make that year resident too. MM2H participants living here most of the year are often resident. For MM2H itself, I coordinate with a MOTAC-licensed MM2H agent; approval is decided by the authorities. See MM2H in 2026.
Selling. Real property gains tax follows citizenship and holding period, not tax residence. The buyer’s lawyer must hold back part of the price and pay it to LHDN within 60 days of the disposal: 3% for citizens and PRs (Part I) and 7% for other individuals (Part III), according to LHDN’s page updated 26 June 2026. You also file the RPGT return through e-CKHT within 60 days. See my RPGT guide and selling JB property as a foreigner.
Running the let from abroad. A stamped tenancy agreement, a Malaysian bank account for rent and bills, someone on the ground (see managing a JB property from overseas) and a registered power of attorney make Form M much easier. Ask agents for invoices that say whether a fee is for a first letting or a renewal, because only the renewal fee is deductible.
Where to buy if this matters to you
Owners abroad usually want homes that let easily. Foreign buyers in Johor face a RM1 million minimum price for most homes, with only limited exceptions (for example, some serviced apartments sold by developers with state approval); no area is exempt as a whole. See the Johor minimum price guide.
- JB Sentral and Bukit Chagar: near the CIQ and the RTS Link station, targeted to open in February 2027.
- Iskandar Puteri: Medini, EduCity and the Second Link to Tuas.
- Mount Austin: an established family area with steady rental demand.
- Danga Bay: waterfront condos close to the city centre.
- Tebrau, Setia Indah and Molek: settled neighbourhoods near malls.
- Permas Jaya and Senibong: east-side condos at moderate asking rents.
Compare them on my JB property map.
More Johor living guides: Rental tax for resident landlords · The 182-day tax residency rule · Singapore tax on JB rent · Furnished or unfurnished rentals · Buying from an overseas owner
Frequently asked questions
How much tax does a non-resident pay on rental income in Malaysia?
A flat 30% of the net rent after allowable expenses, the rate LHDN lists for non-resident individuals from YA2020 to YA2025. Non-residents get no personal reliefs and no tax reductions.
Can non-resident landlords deduct expenses?
Yes. The same letting expenses apply as for residents under LHDN Public Ruling 12/2018: assessment, quit rent, loan interest, fire insurance, ordinary repairs, rent collection and tenancy renewal costs. Costs of finding the first tenant and improvements are not deductible.
Does my tenant have to withhold tax because I live overseas?
Generally no. LHDN’s withholding categories cover rent for moveable property, not houses or condos. The tenant pays the full rent and you declare it on Form M. Check with a tax agent if a corporate tenant proposes to withhold.
Which form does a non-resident landlord file?
Form M, filed online as e-M on MyTax, after registering for a tax number on e-Daftar. The due date is set each year in LHDN’s Return Form Filing Programme, so check it for your year.
I am a Malaysian working abroad. Am I a non-resident?
Usually, if you spend less than 182 days in Malaysia in a calendar year and no other residence test applies. Citizenship does not decide it. The year you leave can still be a resident year.
How much is held back when a non-resident sells a property?
It depends on citizenship, not residence. The buyer’s lawyer holds back 7% of the price for RPGT if the seller is not a Malaysian citizen or PR, and 3% if the seller is, and pays it to LHDN within 60 days.
Own a JB home and live overseas?
Tell me where your property is and where you live. I’ll give you a realistic asking rent range, explain how viewings, handover and rent collection work while you are abroad, and keep tidy records for your tax agent. You can also book an appointment when you are in JB, or a Zoom consultation from overseas.
Sources: LHDN, who is taxable (non-residents taxed at 30%, no reliefs), checked November 2026; LHDN, Navigasi HASiL 2026 (non-resident rates by year, YA2025 resident rates, TIN registration in the MyTax app, 7-year records), 2026; LHDN, Tax Treatment, Residents and Non-Residents, checked November 2026; Attorney General’s Chambers, Laws of Malaysia: Income Tax Act 1967 (sections 4, 7, 103, 104, 109B and 109F), checked November 2026; LHDN, Public Ruling No. 11/2017, Residence Status of Individuals, 22 December 2017; LHDN, Public Ruling No. 12/2018, Income from Letting of Real Property, 19 December 2018; LHDN, list of public rulings, checked November 2026; LHDN, Cukai Pegangan (withholding tax categories and sections), checked November 2026; LHDN, individual FAQ (e-Daftar for non-citizens, paying from abroad, record keeping), checked November 2026; LHDN, Program Memfail Borang Nyata bagi Tahun 2026, issued 30 December 2025, updated 1 April 2026; LHDN, return form deadlines, checked November 2026; LHDN, Tax and Expatriates slides (Form M due date, late filing penalties), updated 13 March 2023; The Star, “IRB advises taxpayers to check travel restriction status before going abroad”, 3 September 2024; Bernama, “Budget 2027: Individual Tax Relief Raised To RM12,000”, 9 October 2026; LHDN, Malaysia–Singapore double taxation agreement, signed 5 October 2004 (Articles 6 and 23), checked November 2026; IRAS, e-Tax Guide: Tax Exemption for Foreign-Sourced Income (fifth edition), 30 January 2026; LHDN, Notification of Cessation and Leaving Malaysia (CP21), updated 8 September 2026; LHDN, RPGT responsibilities of disposer and acquirer (retention rates, 60 days, e-CKHT), updated 26 June 2026; LHDN, RPGT rates, updated 23 June 2026; The Star, “JB-Singapore RTS Link to commence operations in February 2027”, 2 October 2026
Jason Lim, REN 84424, IQI Realty Sdn. Bhd. E (1) 1584/6. General information checked on 15 November 2026, not tax, legal or financial advice. I am not a tax adviser. Tax rates, deadlines and rules change with each Budget; confirm with LHDN or a licensed tax agent, and with an adviser in your home country, before you file.