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By Jason Lim, REN 84424 · IQI Realty · Checked on 12 November 2026
This guide is for Singapore residents, Singaporeans, PRs and Malaysians working in Singapore, who own or plan to buy a Johor Bahru home and let it out. The short answer: the rent is Malaysian income, so you pay tax on it in Malaysia, at a flat 30% of the taxable amount if you are a non-resident individual there, after allowable expenses. On the Singapore side, foreign-sourced income received by resident individuals is generally exempt, unless it comes through a Singapore partnership. So for most individual owners the tax bill sits in Malaysia, not Singapore.
Quick answer
- Malaysia taxes the rent: income from property in Malaysia is Malaysian income. Non-resident individuals are taxed at a flat 30% with no personal reliefs (LHDN).
- Residence goes by days, not passport: being in Malaysia 182 days or more in a year generally makes you a Malaysian tax resident, taxed at resident rates instead.
- Expenses you can deduct: quit rent, assessment, loan interest, fire insurance, ordinary repairs, rent collection and tenancy renewal costs (LHDN Public Ruling 12/2018).
- Filing: register a Malaysian tax number through e-Daftar on MyTax, then file the non-resident return, Form M, each year.
- Singapore: foreign-sourced income received by resident individuals has been exempt since 1 January 2004, except income received through a Singapore partnership (IRAS e-Tax Guide, January 2026).
- The treaty: under the 2004 Malaysia-Singapore agreement, income from immovable property may be taxed where the property is, in Malaysia.
Malaysia taxes the rent first
LHDN (the Inland Revenue Board of Malaysia, also called HASiL) taxes income accruing in or derived from Malaysia, and rent is one of the income types it lists. A JB condo or house is in Malaysia, so its rent is Malaysian-source income whoever owns it and wherever they live. The Malaysia-Singapore double tax agreement, signed in Putrajaya on 5 October 2004, agrees: Article 6 says income a Singapore resident earns from immovable property in Malaysia may be taxed in Malaysia.
Resident or non-resident in Malaysia?
Your Malaysian tax residence depends on physical presence, not nationality. Under section 7 of the Income Tax Act 1967, being in Malaysia for 182 days or more in a calendar year generally makes you resident, and there are other tests linked to neighbouring years.
| Your situation | Likely Malaysian status | How the rent is taxed |
|---|---|---|
| Live and work in Singapore, visit JB now and then | Non-resident | Flat 30% of chargeable income; no reliefs or rebates |
| Live in JB and commute to Singapore most days | Possibly resident (check your day count) | Resident scale rates, with personal reliefs |
| Malaysian citizen working and living in Singapore | Depends on days in Malaysia, not citizenship | Usually the non-resident flat rate |
LHDN’s 2026 guide lists the 30% non-resident rate for the years up to 2025. Check the rate for the year you are filing when you file.
Expenses you can deduct
LHDN’s Public Ruling 12/2018 on income from letting real property (19 December 2018) lists the expenses allowed against rent when letting is not run as a business:
| Allowed | Not allowed |
|---|---|
| Assessment (council) and quit rent (land office) | Costs of finding your first tenant: advertising, legal fees and stamp duty on the first tenancy agreement, agent’s commission |
| Interest on the loan used to buy the property | Expenses before the property was first let |
| Fire insurance premium on the property | Costs while the home sits empty and is not ready to let |
| Rent collection fees and legal costs to collect rent | Work beyond ordinary repairs, which is not on the allowed list |
| Costs of renewing a tenancy or changing tenants | |
| Ordinary repairs that keep the property in its existing state | |
| Replacing furniture and air-conditioners in a furnished let |
My rental income tax guide goes through the deductions in more detail.
An illustration
| Item (invented figures) | RM a year |
|---|---|
| Rent received: RM2,500 a month for 12 months | 30,000 |
| Less assessment and quit rent | (1,000) |
| Less loan interest | (12,000) |
| Less fire insurance | (300) |
| Less ordinary repairs | (1,200) |
| Chargeable rental income | 15,500 |
| Tax at the 30% non-resident rate | 4,650 |
Registering and filing in Malaysia
- Get a tax number (TIN). Individuals register online through e-Daftar on the MyTax portal. Since 3 November 2025, non-citizens aged 18 or over with an NFC-enabled passport can also register in the MyTax mobile app (LHDN, Navigasi HASiL 2026).
- File Form M. Non-resident individuals file Form M (e-M on MyTax) for each year of assessment. LHDN publishes the deadlines each year in its Return Form Filing Programme, so check it before you file.
- Pay what you owe. Tax is due by the filing deadline; late filing and late payment can bring penalties.
- Use a tax agent if you prefer. Many owners abroad appoint a Malaysian tax agent to file for them. Their fees are not on the ruling’s list of deductions, so ask how to treat them.
LHDN’s FAQ says records should be kept for seven years from the year the return is submitted. Keep the tenancy agreements and stamping certificates, rent statements, bills, loan statements and receipts for repairs.
Letting your JB unit from Singapore?
Tell me the project and when it will be ready. I’ll find and screen tenants, prepare the agreement and keep the rent and expense records your tax agent needs.
WhatsApp JasonThe Singapore side
IRAS’s e-Tax Guide on tax exemption for foreign-sourced income (fifth edition, 30 January 2026) says that from 1 January 2004, all foreign-sourced income received in Singapore by resident individuals is exempt from tax, except income received through a Singapore partnership. Rent from a JB home is foreign-sourced, so for a Singapore tax resident who owns the home personally, rent sent back to Singapore is generally not taxed in Singapore.
- Through a partnership. If the letting is done through a Singapore partnership, different conditions apply. Take advice.
- Through a company. A Singapore company that owns Malaysian property is under separate rules. See buying property through a company in Malaysia for the Malaysian side.
- Treaty credit. Article 23 of the agreement lets Singapore give a credit for Malaysian tax on Malaysian-source income, subject to Singapore law. For individuals whose rent is exempt in Singapore, there is usually nothing to credit against.
Your HDB flat, ABSD position and CPF are separate questions from rental tax. See JB property, HDB and ABSD for Singaporeans and using CPF for JB property.
When you sell: RPGT
Selling is taxed separately, under Malaysia’s Real Property Gains Tax (RPGT). The buyer retains part of the price and pays it to LHDN within 60 days: 7% if the seller is not a Malaysian citizen or permanent resident, 3% for citizens and PRs.
| When you sell, counted from purchase | Non-citizens and non-PRs | Malaysian citizens and PRs |
|---|---|---|
| Within years 1 to 3 | 30% | 30% |
| In year 4 | 30% | 20% |
| In year 5 | 30% | 15% |
| Year 6 onwards | 10% | 0% |
A Malaysian living in Singapore pays RPGT at the citizen rates. My RPGT guide shows how the gain is worked out, and what sellers pay in Malaysia lists the other selling costs.
Running a JB let from Singapore
- Use a written tenancy agreement and stamp it. Stamp duty is on the agreement, under LHDN’s guideline. See my landlord guide to tenancy agreements.
- Screen tenants properly. Check identity, a valid pass for foreign tenants and income. See tenant screening and inventory and renting to foreign tenants.
- Consider a property manager. Rent collection fees are on LHDN’s list of deductible expenses. See managing a JB property from overseas.
- Short stays are different. Building by-laws and rules on short-term rentals can restrict them, and the income may be treated differently. See Airbnb and short-stay rules in JB.
- Keep a simple ledger. One line per month for rent received and one per bill paid makes Form M straightforward.
Where to buy if this matters to you
- JB Sentral and Bukit Chagar: near the CIQ and the RTS Link station, popular with commuting tenants.
- Iskandar Puteri: Medini, EduCity and the Second Link to Tuas.
- Mount Austin: an established family area with a deep rental market.
- Danga Bay: waterfront condos near the city centre.
- Tebrau, Setia Indah and Molek: family neighbourhoods with malls nearby.
Compare them on my JB property map or with the JB property cost calculator in SGD.
More Johor living guides: Living in JB, working in Singapore · Financing JB property from Singapore · Double death tax for Singaporeans with JB property · Managing a JB property from overseas
Frequently asked questions
Do I pay Singapore tax on rent from my JB condo?
Generally no, if you are a Singapore tax resident who owns it personally. IRAS exempts foreign-sourced income received in Singapore by resident individuals, except income received through a Singapore partnership.
How much Malaysian tax does a non-resident pay on rental income?
A flat 30% of chargeable rental income, with no personal reliefs or rebates, according to LHDN. Chargeable income is the rent minus allowable expenses such as quit rent, assessment, loan interest, fire insurance and ordinary repairs.
Do I need to file a Malaysian tax return if I live in Singapore?
Yes, if you have rental income from Malaysia. Register for a tax number through e-Daftar on MyTax, then file Form M each year by the date in LHDN’s Return Form Filing Programme.
Can I deduct the cost of finding my first tenant?
No. LHDN’s Public Ruling 12/2018 says initial costs of securing the first tenant, such as advertising, legal fees, stamp duty and agent’s commission, are not deductible. Costs of renewing a tenancy or changing tenants are.
Does the Malaysia-Singapore tax treaty stop double tax on rent?
The 2004 agreement lets Malaysia tax income from property in Malaysia (Article 6), and lets Singapore give a credit for Malaysian tax (Article 23). For individuals, Singapore usually exempts the rent anyway, so double tax rarely arises.
What tax do I pay when I sell my JB property?
Malaysian RPGT. For non-citizens it is 30% of the chargeable gain within five years and 10% from the sixth year; the buyer retains 7% of the price for LHDN. Malaysian citizens pay citizen rates, 0% from the sixth year.
Owning or buying a JB home from Singapore?
Tell me the project, whether you plan to let it out and when. I will help you find and screen tenants, prepare the tenancy agreement and keep tidy records of rent and bills for your tax agent. You can also book an appointment for a viewing on your next trip, or a Zoom consultation from Singapore.
Sources: LHDN, who is taxable (non-resident individuals taxed at 30%, no reliefs), checked November 2026; LHDN, Tax Treatment, Residents and Non-Residents, checked November 2026; LHDN, Navigasi HASiL 2026 (tax rates, TIN registration and MyTax app for non-citizens), 2026; LHDN, Public Ruling No. 12/2018, Income from Letting of Real Property, 19 December 2018; LHDN, individual FAQ (Form M, record keeping), checked November 2026; LHDN, return form deadlines, checked November 2026; IRAS, e-Tax Guide: Tax Exemption for Foreign-Sourced Income (fifth edition), 30 January 2026; LHDN, Malaysia-Singapore double taxation agreement, signed 5 October 2004 (Articles 6 and 23), checked November 2026; LHDN, RPGT rates, updated 23 June 2026; LHDN, responsibilities of disposer and acquirer (RPGT retention), updated 26 June 2026; LHDN, Garis Panduan Pengenaan Duti Setem, First Schedule, Stamp Act 1949, 30 June 2026
Jason Lim, REN 84424, IQI Realty Sdn. Bhd. E (1) 1584/6. General information checked on 12 November 2026, not tax, legal or financial advice. Tax rules in Malaysia and Singapore change, and your residence status and ownership structure matter; confirm with LHDN, IRAS or a licensed tax agent before you file.