{"id":106695,"date":"2026-10-07T10:04:23","date_gmt":"2026-10-07T02:04:23","guid":{"rendered":"https:\/\/iqiglobal.com\/blog\/?p=106695"},"modified":"2026-10-07T15:21:36","modified_gmt":"2026-10-07T07:21:36","slug":"rental-income-tax-guide","status":"publish","type":"post","link":"https:\/\/iqiglobal.com\/blog\/rental-income-tax-guide\/","title":{"rendered":"Rental Income Tax in Malaysia 2026: What Landlords Actually Pay"},"content":{"rendered":"\n

Version: BM<\/mark><\/a><\/em><\/strong><\/p>\n\n\n\n

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Most Malaysian landlords get rental income tax wrong in one of two directions.<\/p>\n\n\n\n
Some do not declare it at all, assuming LHDN will never notice. Others declare every ringgit of rent they collected and forget that the law taxes profit, not rent<\/strong>.<\/p>\n\n\n\n
The first group risks a back-assessment. The second group quietly overpays, sometimes by thousands of ringgit a year.<\/p>\n\n\n\n
This guide walks through what is taxable, what you can deduct, and what the tax actually costs on a real Klang Valley condo. With the numbers filled in.<\/p>\n\n\n\n
Hosting on Airbnb instead? There is a dedicated section on the short-term rental market, the rules, and how hosting income is taxed.<\/p>\n\n\n\n
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TL;DR<\/h2>\n\n\n\n
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Rental income tax applies to all rent from Malaysian property under the Income Tax Act 1967. There is no minimum threshold, and no exemption for small landlords.<\/li>\n\n\n\n
You are taxed on net<\/strong> rent, not gross. Gross rent minus allowable expenses.<\/li>\n\n\n\n
Resident individuals pay progressive rates of 0% to 30%. Non-residents pay a flat 30%. Residency is decided by 182 days of physical presence, not by citizenship, so a foreigner living in Malaysia is generally taxed like a Malaysian.<\/li>\n\n\n\n
The 50% residential rental exemption has expired<\/strong>. It applied to YA 2018 only. Any article still promoting it is out of date.<\/li>\n\n\n\n
Loan interest<\/em> is deductible. Loan principal<\/em> is not. Neither are the costs of getting your very first tenant.<\/li>\n\n\n\n
Short-term rental and Airbnb income is taxable. Most hosts fall under Section 4(d) rental income<\/strong>, while hosts providing comprehensive services may be taxed under Section 4(a) business income<\/strong>, which affects filing requirements and capital allowance claims.<\/li>\n\n\n\n
Service tax on rental and leasing fell from 8% to 6% on 1 January 2026, and the MSME tenant exemption threshold rose to RM1.5 million. Residential lettings are generally outside it.<\/li>\n\n\n\n
Form BE is due 30 April, with e-Filing grace to 15 May. Form B is due 30 June, with grace to 15 July.<\/li>\n<\/ul>\n\n\n\n
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Everything About Rental Income Tax in Malaysia<\/h2>
TL;DR<\/a><\/li>
The Short-Term Rental Tax Landscape in Malaysia (2026)<\/a><\/li>
1. Do you have to pay rental income tax in Malaysia?<\/a><\/li>
2. Is your rental taxed under Section 4(a) or Section 4(d)?<\/a><\/li>
3. What expenses reduce your rental income tax?<\/a><\/li>
4. Rental income tax example: what does a RM2,500 condo cost?<\/a><\/li>
5. Does joint ownership lower your rental income tax?<\/a><\/li>
6. Is there still a 50% rental income tax exemption?<\/a><\/li>
7. What happens if your rental property makes a loss?<\/a><\/li>
8. Do you need to charge SST on rent in 2026?<\/a><\/li>
9. Are foreign landlords taxed differently in Malaysia?<\/a>
Two things foreign landlords get wrong<\/a><\/li><\/ul><\/li>
11. How and when do you file rental income tax?<\/a><\/li>
12. What if you have never declared your rental income?<\/a><\/li>
Key Takeaways<\/a><\/li>
Frequently Asked Questions<\/a><\/li><\/ul><\/div>\n\n\n\n
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The Short-Term Rental Tax Landscape in Malaysia (2026)<\/h2>\n\n\n\n
Short-term rental is no longer a side corner of the Malaysian rental market. It is a market of its own, with its own numbers, its own rules, and its own tax questions.<\/p>\n\n\n\n
Before the tax, it helps to see the size of what you are stepping into.<\/p>\n\n\n\n
How big is the short-term rental market in Malaysia?<\/strong><\/p>\n\n\n\n
Big, and still growing. Airbtics’ Malaysia market review for 2025 put national averages at 45.07% occupancy, an average daily rate (ADR) of RM239 and RM40,686 in annual revenue per listing<\/strong>, across 15 markets. Supply grew 24.83% year on year, while revenue rose only 2.05%.<\/p>\n\n\n\n
Read that gap carefully. More listings are chasing a slower-growing pool of bookings. Hosts who win are the ones in the right city, with the right unit, priced well.<\/p>\n\n\n\n
Here is how the four most-watched cities compare.<\/p>\n\n\n\n
City<\/th> Active listings<\/th> Occupancy<\/th> ADR<\/th> Median annual revenue<\/th><\/tr><\/thead>
Kuala Lumpur<\/td> 20,013<\/td> 59%<\/td> RM237<\/td> RM52,000<\/td><\/tr>
Johor Bahru<\/td> 4,707<\/td> 45%<\/td> RM270<\/td> RM46,000<\/td><\/tr>
Kota Kinabalu<\/td> 2,503<\/td> 58%<\/td> RM256<\/td> RM56,000<\/td><\/tr>
George Town<\/td> 1,679<\/td> 60%<\/td> RM275<\/td> RM62,000<\/td><\/tr>
Malaysia average (2025)<\/strong><\/td> Supply up 24.83%<\/td> 45.07%<\/td> RM239<\/td> RM40,686<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n
Source:<\/strong> Airbtics. City figures cover February 2025 to January 2026 (updated 12 March 2026). National figures from the Airbtics Malaysia Short-Term Rental Market Review 2025. Revenue figures are gross, before fees, cleaning, utilities and tax.<\/p>\n\n\n\n
A few patterns stand out.<\/p>\n\n\n\n
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Kuala Lumpur is the volume market.<\/strong> It holds more active listings than the other three cities combined, and added 4,676 listings in 2025 alone.<\/li>\n\n\n\n
George Town earns the most per listing<\/strong>, on the highest occupancy, with a fraction of KL’s supply. It is also the city with the newest and strictest rules (more below).<\/li>\n\n\n\n
Johor Bahru charges the most per night but books less often<\/strong>, which tracks with weekend-heavy Singapore demand.<\/li>\n\n\n\n
Kota Kinabalu is the quiet performer<\/strong>, with listings up 19.2% year on year and occupancy close to KL.<\/li>\n<\/ul>\n\n\n\n
Demand is real. Malaysia recorded 42,196,892 international visitors in 2025<\/strong>, up 11.2% on 2024 and 20.4% above 2019, according to Tourism, Arts and Culture Minister Datuk Seri Tiong King Sing. Singapore alone sent more than 21 million. Visit Malaysia Year 2026 adds a further push.<\/p>\n\n\n\n
Want to compare short-stay numbers against long-term rent in a specific area? Our Damansara rental yield guide<\/a><\/mark><\/strong> shows how to read yield properly.<\/p>\n\n\n\n
What rules apply to short-term rentals in Malaysia?<\/strong><\/p>\n\n\n\n
This is where many first-time hosts get caught. There is no single national short-term rental law yet.<\/strong> Instead, several layers stack on top of each other.<\/p>\n\n\n\n
Layer<\/th> What it means for hosts<\/th> Status<\/th><\/tr><\/thead>
National STRA planning guidelines<\/strong> (KPKT, via PLANMalaysia, with MOTAC)<\/td> Meant to set a common reference for local councils on property types, registration, safety and stay limits.<\/td> At the last public update in September 2025, still awaiting Cabinet, with the launch postponed.<\/td><\/tr>
Local council operating licence<\/strong><\/td> MOTAC has said short-term rental premises operating as tourist lodging must first get a business operating licence from the local authority.<\/td> Varies by council. Check yours before listing.<\/td><\/tr>
Penang Private Homestay By-Law 2026<\/strong><\/td> Licence from MBPP or MBSP. RM50 application fee, RM1,000 a year for up to 3 rooms (RM200 per extra room), plus RM1,800 a year per unit. Strata residential on the island is restricted unless the management corporation permits. Penalty up to RM2,000 and\/or one year’s jail.<\/td> In force from 1 August 2026. Enforcement from 1 November 2026. The first state to enforce such a law.<\/td><\/tr>
Strata by-laws<\/strong> (JMB or MC)<\/td> Your building’s own house rules can restrict or ban short stays, regardless of state law.<\/td> Building by building. Ask for the by-laws in writing.<\/td><\/tr>
Service tax on accommodation<\/strong> (Group A)<\/td> 8% service tax for accommodation operators, including homestays and serviced apartments, once taxable turnover passes RM500,000 over 12 months.<\/td> Applies now. Most individual hosts sit well below the threshold.<\/td><\/tr>
Tourism tax<\/strong><\/td> RM10 per room per night on foreign guests. Booking platforms collect and remit it for stays booked through them.<\/td> In place since 1 July 2021. Malaysians and PRs are exempt.<\/td><\/tr>
Income tax<\/strong> (LHDN)<\/td> Hosting income is taxable from the first ringgit. Classified under Section 4(d) or 4(a).<\/td> Applies now. Covered in full below.<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n
Rules on whether you can host at all differ by state and by building. For the state-by-state legal picture, read our explainer on whether running an Airbnb is legal in Malaysia<\/a><\/mark><\/strong>, then confirm with your local council.<\/p>\n\n\n\n
Short-term vs long-term rental: what changes for you?<\/strong><\/p>\n\n\n\n
Factor<\/th> Short-term rental<\/th> Long-term rental<\/th><\/tr><\/thead>
Typical occupant<\/td> Tourists, business travellers<\/td> Residents, families, expats<\/td><\/tr>
Income pattern<\/td> Higher gross, swings with season and occupancy<\/td> Lower gross, fixed monthly rent<\/td><\/tr>
Running costs<\/td> High: platform fees, cleaning, utilities, furnishing<\/td> Low: repairs, occasional agent fees<\/td><\/tr>
Rules to check<\/td> Council licence, strata by-laws, tourism tax<\/td> Stamped tenancy agreement<\/td><\/tr>
Income tax<\/td> Usually 4(d), sometimes 4(a). Furniture claim depends on it<\/td> Almost always 4(d)<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n
The short version: record-keeping decides a host’s tax bill<\/strong>. Section 2 settles the 4(a) or 4(d) question, and Section 4 runs the host maths.<\/p>\n\n\n\n
Short stay or long let: which earns more after costs?<\/mark><\/strong><\/p>\n\n\n\n
Cleaning, furnishing and vacancy eat into short-stay income faster than most hosts expect.<\/mark> See the hidden costs of a rental →<\/mark><\/a><\/strong><\/p>\n\n\n\n
1. Do you have to pay rental income tax in Malaysia?<\/h2>\n\n\n\n
Yes. Rental income tax applies to rent from any Malaysian property under the Income Tax Act 1967<\/a><\/mark><\/strong>, and it is added to your other income for the year.<\/p>\n\n\n\n
There is no minimum threshold and no small-landlord exemption.<\/strong> One spare room counts. An inherited terrace house counts. A single condo you rent out while living with your parents counts.<\/p>\n\n\n\n
The common assumption is that LHDN has no way of knowing. That has not been true for some time.<\/p>\n\n\n\n
Your tenancy agreement gets stamped, which creates a record in LHDN’s own system. Rent almost always lands in a bank account rather than in cash. Property ownership sits in the land registry. The trail exists whether or not you declare.<\/p>\n\n\n\n
What is genuinely useful to understand is that rental income tax applies to your rental profit<\/strong>, not your rent. Get the deductions right and the bill is usually far smaller than landlords fear.<\/p>\n\n\n\n
Not sure what a rental property really costs to hold? Read our breakdown of the hidden costs of owning a rental property<\/a>.<\/mark><\/strong><\/p>\n\n\n\n
2. Is your rental taxed under Section 4(a) or Section 4(d)?<\/h2>\n\n\n\n
This is the first fork in the road, and it decides how your rental income tax is calculated and what you can claim.<\/p>\n\n\n\n
LHDN Public Ruling No. 12\/2018 sets the test. Letting is treated as a business source under Section 4(a)<\/strong> when maintenance and support services are provided comprehensively and actively. Otherwise it is a non-business source under Section 4(d)<\/strong>.<\/p>\n\n\n\n
Think of it this way. If you hand over the keys and collect rent, that is 4(d). If you are running something closer to a hotel, with cleaning, linen, front desk and meals, that starts to look like 4(a).<\/p>\n\n\n\n
Factor<\/th> Section 4(d), non-business<\/th> Section 4(a), business<\/th><\/tr><\/thead>
Typical landlord<\/td> Owns one to a few units, passive letting<\/td> Provides active, comprehensive services<\/td><\/tr>
Tax form<\/td> Form BE, or Form B if you also have business income<\/td> Form B<\/td><\/tr>
Capital allowances on furniture and fittings<\/td> Not available<\/td> Available<\/td><\/tr>
Losses carried forward<\/td> No<\/td> Yes, subject to conditions<\/td><\/tr>
Filing deadline<\/td> 30 April, e-Filing grace to 15 May<\/td> 30 June, e-Filing grace to 15 July<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n
The overwhelming majority of Malaysian individual landlords fall under 4(d).<\/strong> The rest of this guide assumes that unless stated.<\/p>\n\n\n\n
Short-stay and Airbnb hosting: 4(a) or 4(d)?<\/strong><\/p>\n\n\n\n
It depends on what you actually do, not on which platform you list with.<\/p>\n\n\n\n
Public Ruling No. 12\/2018, Income from Letting of Real Property<\/em><\/a>,<\/mark><\/strong> issued on 19 December 2018 and replacing PR 4\/2011, defines both halves of the test.<\/p>\n\n\n\n
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“Comprehensively” (paragraph 4.2.1)<\/strong> means doing generally everything needed to maintain and manage the property. That covers the structure, stairways, lobbies, corridors, lifts, drains, pipes and fittings, plus the exterior: car parks, landscaping, recreational areas, walls and lighting.<\/li>\n\n\n\n
“Actively” (paragraph 4.2.2)<\/strong> means you either provide those services yourself, or hire another person or firm to provide them.<\/li>\n\n\n\n
Providing only security<\/strong>, or only some facilities, is not comprehensive. The ruling’s Example 4 lands in 4(d) for exactly that reason.<\/li>\n<\/ul>\n\n\n\n
Notice what the ruling’s 4(a) examples look like. A company owning three condominium blocks of 324 units. An owner of a whole 32-unit building who hires a contractor for structure, lifts and cleaning. The test is about maintaining the property, not about how short the stays are.<\/strong><\/p>\n\n\n\n
That matters for the typical host. If your unit sits in a strata condo, the management body maintains the lifts, lobbies and car park, not you. Cleaning and changing linen inside one unit does not, on its own, match the ruling’s description of comprehensive maintenance.<\/p>\n\n\n\n
The ruling does not address homestays or serviced apartments by name, so treat the table below as a guide to where each setup usually lands, not a ruling.<\/p>\n\n\n\n
Hosting setup<\/th> Likely treatment<\/th> Why<\/th><\/tr><\/thead>
One strata condo unit on Airbnb, self check-in, cleaner between stays<\/td> 4(d)<\/strong><\/td> The JMB or MC maintains the building. In-unit cleaning is not comprehensive maintenance of the property.<\/td><\/tr>
Same unit handed to a co-host or management company for a fee<\/td> 4(d)<\/strong><\/td> Outsourcing guest handling does not change who maintains the building. The management fee is a deductible expense.<\/td><\/tr>
Several units run as an organised operation, with staff, housekeeping, guest support and marketing<\/td> Arguable 4(a)<\/strong><\/td> Scale, staff and system start to look like a business in their own right. Get a tax agent’s written view.<\/td><\/tr>
Whole building you own, such as a shophouse guesthouse, where you maintain the structure and common areas and provide cleaning, linen and reception<\/td> Likely 4(a)<\/strong><\/td> This mirrors the ruling’s own Example 2: an owner who actively arranges comprehensive maintenance of an entire building.<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n
Why it is worth getting right: 4(a) lets you claim capital allowances on furniture and fittings and carry losses forward<\/strong>. For a host who spent RM30,000 furnishing a unit, that can be worth more than any other deduction. But 4(a) also means Form B, the June deadline, business-level record-keeping, and a classification you must be able to defend.<\/p>\n\n\n\n
Classification follows the facts, not the smaller bill. If you are near the line, get it confirmed by a licensed tax agent before you file. For the legal side of hosting, see our guide to running Airbnb services in Malaysia<\/a>.<\/mark><\/strong><\/p>\n\n\n\n
3. What expenses reduce your rental income tax?<\/h2>\n\n\n\n
Deductions are the main lever you control, and this is where landlords leave the most money on their rental income tax.<\/p>\n\n\n\n
The rule is that an expense must be wholly and exclusively incurred in producing the rental income<\/strong>. In practice that splits into a clean list.<\/p>\n\n\n\n
Deductible<\/th> Not deductible<\/th><\/tr><\/thead>
Loan interest (the interest portion of your instalment)<\/td> Loan principal repayment<\/td><\/tr>
Quit rent (cukai tanah) and assessment (cukai pintu)<\/td> Cost of the property itself<\/td><\/tr>
Fire insurance premium<\/td> Your own time and labour<\/td><\/tr>
Repairs that restore the property to its existing condition<\/td> Renovations and upgrades that improve it<\/td><\/tr>
Maintenance fees and sinking fund for strata units<\/td> New furniture and appliances treated as capital<\/td><\/tr>
Agent commission for a renewal<\/em> or replacement tenant<\/td> Agent commission for your first ever<\/strong> tenant<\/td><\/tr>
Legal fees for renewing a tenancy agreement<\/td> Legal and stamping fees for the first tenancy<\/td><\/tr>
Advertising for a replacement tenant<\/td> Advertising to secure the first tenant<\/td><\/tr>
Rent collection and property management costs<\/td> Income tax paid<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n
Why the “first tenant” rule catches so many people<\/h3>\n\n\n\n
Expenses incurred to obtain<\/em> your first tenant are treated as initial expenses to create the income source. They are not deductible.<\/p>\n\n\n\n
Once the property is let, the same categories of cost become deductible on every subsequent tenancy.<\/p>\n\n\n\n
Split your costs into “getting started” and “keeping it running” and most of the confusion disappears.<\/strong><\/p>\n\n\n\n
How much of your instalment is actually interest?<\/h3>\n\n\n\n
Only the interest portion of your monthly loan repayment is deductible, and in the early years of a loan that portion is much larger than most owners assume.<\/p>\n\n\n\n
Run your loan through the calculator below to see the split before you fill in your form.<\/p>\n\n\n\n<\/iframe>\n\n\n\n<p>Estimates for guidance only. Use your bank’s annual loan statement for the exact interest figure when you file.<\/p>\n\n\n\n<p>Buying another unit to rent out? Check the full cost stack first with our <strong><mark style=\"background-color:rgba(0, 0, 0, 0)\" class=\"has-inline-color has-text-hover-color\"><a href=\"https:\/\/iqiglobal.com\/property-transaction-fees\">property transaction fees calculator<\/a>.<\/mark><\/strong><\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"s4\">4. Rental income tax example: what does a RM2,500 condo cost?<\/h2>\n\n\n\n<p>Numbers make rental income tax concrete. Meet a salaried landlord in the Klang Valley.<\/p>\n\n\n\n<p>She earns RM90,000 a year from employment and rents out a condo at <strong>RM2,500 a month<\/strong>. The unit has been tenanted for three years, so this is not a first letting.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Step 1: Work out net rental income<\/h3>\n\n\n\n<figure class=\"wp-block-table\"><table class=\"has-fixed-layout\"><thead><tr><th>Item<\/th><th>Amount (RM)<\/th><\/tr><\/thead><tbody><tr><td>Gross rent (RM2,500 x 12)<\/td><td>30,000<\/td><\/tr><tr><td>Less: loan interest<\/td><td>(14,400)<\/td><\/tr><tr><td>Less: maintenance fee and sinking fund<\/td><td>(3,600)<\/td><\/tr><tr><td>Less: quit rent and assessment<\/td><td>(1,000)<\/td><\/tr><tr><td>Less: fire insurance<\/td><td>(300)<\/td><\/tr><tr><td>Less: agent commission (renewal)<\/td><td>(2,500)<\/td><\/tr><tr><td>Less: repairs (aircon servicing, plumbing, repainting)<\/td><td>(1,200)<\/td><\/tr><tr><td><strong>Net rental income<\/strong><\/td><td><strong>7,000<\/strong><\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<h3 class=\"wp-block-heading\">Step 2: Find the marginal rate<\/h3>\n\n\n\n<p>After EPF relief of RM4,000 and personal relief of RM9,000, her salary alone gives chargeable income of around RM77,000. That sits in the <strong>19% band<\/strong>.<\/p>\n\n\n\n<p>Rental income stacks on top of employment income, so the net rent is taxed at her marginal rate.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Step 3: The tax<\/h3>\n\n\n\n<p>RM7,000 x 19% = <strong>RM1,330<\/strong>.<\/p>\n\n\n\n<p>That is roughly 4.4% of the gross rent she collected.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">The cost of getting it wrong<\/h3>\n\n\n\n<p>Had she declared the gross RM30,000 without deductions, the tax would have been RM5,700.<\/p>\n\n\n\n<p><strong>Claiming what she was entitled to saved her RM4,370 in a single year.<\/strong><\/p>\n\n\n\n<p>That is the entire argument for keeping receipts.<\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity is-style-wide sc_height_small\">\n\n\n\n<p class=\"has-text-align-center has-medium-font-size\"><strong>Thinking of buying a second unit to rent out?<\/strong><\/p>\n\n\n\n<p class=\"has-text-align-center\">The yield on paper and the yield after tax, maintenance fees and vacancy are two different numbers. An IQI agent helps you compare real rental demand by area, sense-check the asking price, and understand the holding costs before you commit.<\/p>\n\n\n \n<div data-block=\"gutenkit\/button\" data-post-id=\"106695\" id=\"block-e8f1867b-9826-4ed1-8f55-dd7205417384\" class=\"wp-block-gutenkit-button gkit417384 gutenkit-block\"><div class=\"gkit-btn-wraper\"><a class=\"gkit-btn\" href=\"https:\/\/iqiglobal.com\/buy\">Talk to a local IQI agent and invest with your eyes open<\/a><\/div><\/div>\n \n\n\n<p class=\"has-text-align-center\">Or browse now: <a href=\"https:\/\/www.iqiglobal.com\/subsales\" target=\"_blank\" rel=\"noreferrer noopener\">subsale homes<\/a> and <a href=\"https:\/\/www.iqiglobal.com\/projects\" target=\"_blank\" rel=\"noreferrer noopener\">new launches<\/a>.<\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity is-style-wide sc_height_medium\">\n\n\n\n<h2 class=\"wp-block-heading\" id=\"s5\">5. Does joint ownership lower your rental income tax?<\/h2>\n\n\n\n<p>It often does, and it is one of the few structural ways to reduce rental income tax, and this is one of the most under-discussed points in Malaysian landlord tax.<\/p>\n\n\n\n<p>Where a property is held in joint names, the rental income is generally split according to the ownership share, and each owner declares their portion in their own return.<\/p>\n\n\n\n<p>Because Malaysia taxes individuals progressively, <strong>splitting income across two people can pull part of it into a lower band<\/strong>.<\/p>\n\n\n\n<p>Take the same condo from Section 4, now held 50\/50 by a couple. One spouse is in the 19% band, the other in the 6% band.<\/p>\n\n\n\n<figure class=\"wp-block-table\"><table class=\"has-fixed-layout\"><thead><tr><th>Scenario<\/th><th>Net rent taxed<\/th><th>Rate<\/th><th>Tax (RM)<\/th><\/tr><\/thead><tbody><tr><td>Sole name<\/td><td>RM7,000<\/td><td>19%<\/td><td>1,330<\/td><\/tr><tr><td>Joint, higher earner’s half<\/td><td>RM3,500<\/td><td>19%<\/td><td>665<\/td><\/tr><tr><td>Joint, lower earner’s half<\/td><td>RM3,500<\/td><td>6%<\/td><td>210<\/td><\/tr><tr><td><strong>Joint total<\/strong><\/td><td>RM7,000<\/td><td>Mixed<\/td><td><strong>875<\/strong><\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<p>A saving of RM455 on one modest condo, every year.<\/p>\n\n\n\n<p>Two cautions. The split should follow actual legal ownership rather than whatever is convenient at filing time. And ownership structure affects far more than tax, including financing and future disposal. Decide it when you buy, not when you file.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"s6\">6. Is there still a 50% rental income tax exemption?<\/h2>\n\n\n\n<p>No. <strong>This is the single most repeated piece of outdated advice about rental income tax in Malaysia.<\/strong><\/p>\n\n\n\n<p>The incentive existed. Announced in Budget 2018, it gave resident individuals a 50% exemption on statutory rental income from residential property let at up to RM2,000 a month, subject to a legal tenancy agreement.<\/p>\n\n\n\n<p>It was gazetted through the Income Tax (Exemption) (No. 2) Order 2019 and covered the 2018 calendar year. <strong>It has since lapsed.<\/strong><\/p>\n\n\n\n<p>For YA 2025 and YA 2026 there is no blanket exemption on residential rental income. You are taxed on the net, and your relief comes from claiming your deductions properly.<\/p>\n\n\n\n<p>If a blog, forum post or agent tells you otherwise, check the date on it.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"s7\">7. What happens if your rental property makes a loss?<\/h2>\n\n\n\n<p>Plenty of Klang Valley condos run at a paper loss in the early years, once loan interest and maintenance fees are counted.<\/p>\n\n\n\n<p>Under Section 4(d), your rental properties are generally pooled as a single source for the year. A loss on one unit can be set against income from another in the same year.<\/p>\n\n\n\n<p>But here is the trap. <strong>An overall rental loss under Section 4(d) cannot be carried forward to future years, and cannot be set against your salary.<\/strong><\/p>\n\n\n\n<p>Declare it anyway. A loss year is not a reason to skip the entry, and under-declaring is exactly what invites a review.<\/p>\n\n\n\n<p>If you hold several properties and losses are a recurring feature of your position, that is a conversation worth having with a licensed tax agent rather than a blog.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"s8\">8. Do you need to charge SST on rent in 2026?<\/h2>\n\n\n\n<p>This is the newest part of the picture, and it changed twice in twelve months.<\/p>\n\n\n\n<p>Rental and leasing services came into the service tax net under Group K of the Service Tax Regulations 2018 on 1 July 2025, at 8%.<\/p>\n\n\n\n<p>Then, effective <strong>1 January 2026, the rate dropped from 8% to 6%<\/strong>, and the annual sales threshold for the MSME tenant exemption rose to RM1.5 million.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Who this actually affects<\/h3>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Residential landlords:<\/strong> generally outside the scope. Housing accommodation used for residential purposes is not caught.<\/li>\n\n\n\n<li><strong>Commercial landlords:<\/strong> registration is required once taxable rental turnover exceeds RM1 million over a 12-month period.<\/li>\n\n\n\n<li><strong>The use test matters more than the title.<\/strong> The updated Customs guide makes clear that a residential unit let out as an office or administrative premises can fall into scope. A condo rented to a small design studio is not automatically exempt just because it is a condo.<\/li>\n<\/ul>\n\n\n\n<p id=\"h-\">Short-stay hosts sit under a different heading. Accommodation is taxed under Group A, not Group K, and the <a href=\"https:\/\/www.claudeusercontent.com\/?domain=claude.ai&parentOrigin=https%3A%2F%2Fclaude.ai&errorReportingMode=parent&formattedSpreadsheets=true&contentType=text%2Fhtml#str\" target=\"_blank\" rel=\"noreferrer noopener\"><strong><mark style=\"background-color:rgba(0, 0, 0, 0)\" class=\"has-inline-color has-text-hover-color\">short-term rental rules table<\/mark><\/strong><\/a> above sets out how it works.<\/p>\n\n\n\n<p id=\"h-\">For the wider picture across the property sector, see our guide on <strong><mark style=\"background-color:rgba(0, 0, 0, 0)\" class=\"has-inline-color has-text-hover-color\"><a href=\"https:\/\/iqiglobal.com\/blog\/sst-impact-real-estate-malaysia\/\">how expanded SST affects real estate in Malaysia<\/a>.<\/mark><\/strong> SST rules move often, so confirm current rates and thresholds on the <a href=\"https:\/\/mysst.customs.gov.my\/\">MySST portal<\/a> before you invoice.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"s10\">9. Are foreign landlords taxed differently in Malaysia?<\/h2>\n\n\n\n<p>Not in the way most people assume. <strong>Your rate is decided by your tax residency, not by your passport.<\/strong><\/p>\n\n\n\n<p>Under Section 7 of the Income Tax Act 1967, the main test is physical presence: 182 days or more in Malaysia during the calendar year makes you a tax resident. Citizenship does not enter into it, and neither does your visa type. An employment pass does not make you a resident, and not holding one does not stop you from being one.<\/p>\n\n\n\n<p>That produces a result many foreign owners find surprising.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">The expat living in Malaysia on rental income<\/h3>\n\n\n\n<p>A foreigner who actually lives here, holds a few units, and lives off the rent is almost certainly a <strong>tax resident<\/strong>. He is taxed exactly like a Malaysian: progressive rates of 0% to 30%, full deduction of allowable expenses, and access to personal reliefs.<\/p>\n\n\n\n<p>Say he holds three units at RM3,000 a month each.<\/p>\n\n\n\n<figure class=\"wp-block-table\"><table class=\"has-fixed-layout\"><thead><tr><th>Item<\/th><th>Tax resident (182+ days)<\/th><th>Non-resident<\/th><\/tr><\/thead><tbody><tr><td>Gross rent<\/td><td>RM108,000<\/td><td>RM108,000<\/td><\/tr><tr><td>Less: allowable expenses<\/td><td>(RM60,000)<\/td><td>(RM60,000)<\/td><\/tr><tr><td>Net rental income<\/td><td>RM48,000<\/td><td>RM48,000<\/td><\/tr><tr><td>Less: personal relief<\/td><td>(RM9,000)<\/td><td>Not available<\/td><\/tr><tr><td>Chargeable income<\/td><td>RM39,000<\/td><td>RM48,000<\/td><\/tr><tr><td>Rate<\/td><td>Progressive<\/td><td>Flat 30%<\/td><\/tr><tr><td><strong>Tax payable<\/strong><\/td><td><strong>RM840<\/strong><\/td><td><strong>RM14,400<\/strong><\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<p>Same three units, same rent, same expenses. <strong>A difference of around RM13,560, decided entirely by day count.<\/strong><\/p>\n\n\n\n<p>Note that with no employment there is no EPF relief to claim, so the reliefs available are narrower than a salaried person’s. Medical, insurance and lifestyle reliefs may still apply and would reduce the figure further.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-two-things-foreign-landlords-get-wrong\">Two things foreign landlords get wrong<\/h3>\n\n\n\n<p><strong>You still deduct your allowable expenses as a non-resident.<\/strong> Some sources claim non-residents are taxed on gross rent, or that the tenant must withhold the tax. Malaysian withholding tax does not apply to rent from immovable property in this way, so confirm your position with a tax agent. Non-residents file Form M.<\/p>\n\n\n\n<p><strong>The residency test cuts both ways.<\/strong> Spend five months back home and you can drop under 182 days without anything about your property changing. Your rate flips to 30% with no reliefs for that year, so keep passport stamps and flight records.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"s11\">11. How and when do you file rental income tax?<\/h2>\n\n\n\n<p>You declare rental income tax in your annual return, filed through <strong><mark style=\"background-color:rgba(0, 0, 0, 0)\" class=\"has-inline-color has-text-hover-color\"><a href=\"https:\/\/mytax.hasil.gov.my\/\" target=\"_blank\" rel=\"noreferrer noopener nofollow\">LHDN’s MyTax portal<\/a>.<\/mark><\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Form BE<\/strong> if you are employed and your only non-employment income is rent. Due 30 April, with e-Filing grace usually to 15 May.<\/li>\n\n\n\n<li><strong>Form B<\/strong> if you also carry on a business. Due 30 June, with e-Filing grace usually to 15 July.<\/li>\n\n\n\n<li><strong>Form M<\/strong> for non-residents.<\/li>\n<\/ul>\n\n\n\n<p>Rental income is declared in the dedicated statutory income from rents section, and the HK-4 working sheet is where you show the rent-minus-expenses maths.<\/p>\n\n\n\n<p><strong>You do not attach receipts when you file, but you must keep them for seven years.<\/strong> Deductions you cannot substantiate are deductions LHDN can disallow.<\/p>\n\n\n\n<p>Keep one folder per property. Rent in, expenses out, plus the stamped tenancy agreement and the annual loan interest statement from your bank.<\/p>\n\n\n\n<p>Hosting short stays? Download your annual payout report from each platform. It is the cleanest record of gross income you will have.<\/p>\n\n\n\n<p>Renting to a business? Expect them to ask for an e-invoice, or to issue a self-billed one. Check the current thresholds in LHDN’s e-Invoice guideline on <strong><mark style=\"background-color:rgba(0, 0, 0, 0)\" class=\"has-inline-color has-text-hover-color\"><a href=\"https:\/\/mytax.hasil.gov.my\/\" target=\"_blank\" rel=\"noreferrer noopener\">MyTax<\/a>.<\/mark><\/strong><\/p>\n\n\n\n<p>New to filing? Follow our <a href=\"https:\/\/iqiglobal.com\/blog\/how-to-file-your-income-tax\/\"><strong><mark style=\"background-color:rgba(0, 0, 0, 0)\" class=\"has-inline-color has-text-hover-color\">step-by-step guide to filing income tax in Malaysia<\/mark><\/strong><\/a>, and check the full <strong><mark style=\"background-color:rgba(0, 0, 0, 0)\" class=\"has-inline-color has-text-hover-color\"><a href=\"https:\/\/iqiglobal.com\/blog\/tax-relief-guide\/\" target=\"_blank\" rel=\"noreferrer noopener\">list of personal tax reliefs<\/a><\/mark><\/strong> while you are at it.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"s12\">12. What if you have never declared your rental income?<\/h2>\n\n\n\n<p>Undeclared rental income tax is more common than most landlords admit, and it is fixable.<\/p>\n\n\n\n<p>Under Section 113 of the Income Tax Act 1967, making an incorrect return by omitting or understating income is an offence. It carries a fine and a penalty calculated on the tax undercharged. Persistent or deliberate evasion can escalate further.<\/p>\n\n\n\n<p>The practical route back is a <strong>voluntary amendment before LHDN comes to you<\/strong>. Disclosure that you initiate is generally treated more leniently than income LHDN discovers on its own. The tax owed still has to be paid, but the penalty treatment can differ.<\/p>\n\n\n\n<p>A licensed tax agent can file the revised returns and represent you. <strong>Do not let a small undeclared amount become several years of compounding exposure.<\/strong><\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity is-style-wide sc_height_medium\">\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-key-takeaways\">Key Takeaways<\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Rental income tax applies to all rent from Malaysian property. There is no small-landlord exemption.<\/li>\n\n\n\n<li>You are taxed on net rent. Deductions are the difference between a fair bill and an inflated one.<\/li>\n\n\n\n<li>Loan interest is deductible, loan principal is not, and first-tenant costs are not.<\/li>\n\n\n\n<li>The 50% residential rental exemption expired years ago. Ignore any source that still promotes it.<\/li>\n\n\n\n<li>Joint ownership can meaningfully reduce the total bill by splitting income across tax bands.<\/li>\n\n\n\n<li>A Section 4(d) rental loss cannot be carried forward or offset against salary, but should still be declared.<\/li>\n\n\n\n<li>Short-term rental and Airbnb operators should confirm their tax classification before filing. Most hosts fall under <strong>Section 4(d)<\/strong>, while those providing comprehensive services may qualify as <strong>Section 4(a) business income<\/strong>, affecting filing deadlines, capital allowances and loss carry-forward.<\/li>\n\n\n\n<li>Service tax on rental is 6% from 1 January 2026, mostly affects commercial lettings, and turns on how the property is actually used.<\/li>\n\n\n\n<li>Keep every receipt for seven years. Undocumented deductions are the ones that get disallowed.<\/li>\n<\/ul>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity is-style-wide sc_height_small\">\n\n\n\n<p class=\"has-text-align-center has-medium-font-size\"><strong>Is your rental actually earning its keep?<\/strong><\/p>\n\n\n\n<p class=\"has-text-align-center\">Tax is only one line in the equation. Rent levels, tenant demand and vacancy in your area matter just as much. An IQI agent gives you a straight read on what your unit should be renting for, and what it would fetch if you sold instead.<\/p>\n\n\n\n\t<form id=\"custom-lead-form\" action=\"https:\/\/iqiglobal.com\/leads\/blog\/invest\" method=\"post\">\n\t\t<input type=\"hidden\" name=\"previous_url\" value=\"\">\n <input type=\"hidden\" name=\"action\" value=\"custom_blog_form\">\n\t\t<input type=\"hidden\" name=\"consent_agreement\" value=\"0\">\n\t\t<input type=\"hidden\" name=\"current_url\" value=\"https:\/\/iqiglobal.com\/blog\/wp-json\/wp\/v2\/posts\/106695\">\n\n <input type=\"hidden\" id=\"_wpnonce\" name=\"_wpnonce\" value=\"6369827318\" \/><input type=\"hidden\" name=\"_wp_http_referer\" value=\"\/blog\/wp-json\/wp\/v2\/posts\/106695\" \/>\n <div class=\"custom-lead-form-div\">\n <label class=\"custom-lead-form-label\" for=\"full_name\">Full Name:<\/label><br>\n <input type=\"text\" name=\"full_name\" class=\"full-width-input custom-lead-form-input\" required>\n <\/div>\n\n\t\t<div class=\"custom-lead-form-div\">\n <label class=\"custom-lead-form-label\" for=\"country\">Location:<\/label><br>\n <select name=\"location\" class=\"full-width-input custom-lead-form-input\" required>\n <option value=\"\">Select your location<\/option>\n\t\t\t\t\t<optgroup label=\"Malaysia\">\n\t\t\t\t\t\t<option value=\"Johor\">Johor<\/option><option value=\"Kedah\">Kedah<\/option><option value=\"Kuala Lumpur\">Kuala Lumpur<\/option><option value=\"Melaka\">Melaka<\/option><option value=\"Negeri Sembilan\">Negeri Sembilan<\/option><option value=\"Pahang\">Pahang<\/option><option value=\"Penang\">Penang<\/option><option value=\"Perak\">Perak<\/option><option value=\"Perlis\">Perlis<\/option><option value=\"Sabah\">Sabah<\/option><option value=\"Sarawak\">Sarawak<\/option><option value=\"Selangor\">Selangor<\/option><option value=\"Terengganu\">Terengganu<\/option>\t\t\t\t\t<\/optgroup>\n\t\t\t\t\t<optgroup label=\"Other Countries\">\n\t\t\t\t\t\t<option value=\"Afghanistan\">Afghanistan<\/option><option value=\"Albania\">Albania<\/option><option value=\"Algeria\">Algeria<\/option><option value=\"American Samoa\">American Samoa<\/option><option value=\"Andorra\">Andorra<\/option><option value=\"Angola\">Angola<\/option><option value=\"Anguilla\">Anguilla<\/option><option value=\"Antarctica\">Antarctica<\/option><option value=\"Antigua and Barbuda\">Antigua and Barbuda<\/option><option value=\"Argentina\">Argentina<\/option><option value=\"Armenia\">Armenia<\/option><option value=\"Aruba\">Aruba<\/option><option value=\"Ashmore and Cartier\">Ashmore and Cartier<\/option><option value=\"Australia\">Australia<\/option><option value=\"Austria\">Austria<\/option><option value=\"Azerbaijan\">Azerbaijan<\/option><option value=\"Bahrain\">Bahrain<\/option><option value=\"Baker Island\">Baker Island<\/option><option value=\"Bangladesh\">Bangladesh<\/option><option value=\"Barbados\">Barbados<\/option><option value=\"Bassas da India\">Bassas da 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value=\"Cameroon\">Cameroon<\/option><option value=\"Canada\">Canada<\/option><option value=\"Cape Verde\">Cape Verde<\/option><option value=\"Cayman Islands\">Cayman Islands<\/option><option value=\"Central African Republic\">Central African Republic<\/option><option value=\"Chad\">Chad<\/option><option value=\"Chile\">Chile<\/option><option value=\"China\">China<\/option><option value=\"Christmas Island\">Christmas Island<\/option><option value=\"Clipperton Island\">Clipperton Island<\/option><option value=\"Cocos (Keeling) Islands\">Cocos (Keeling) Islands<\/option><option value=\"Colombia\">Colombia<\/option><option value=\"Comoros\">Comoros<\/option><option value=\"Congo, Democratic Republic of the\">Congo, Democratic Republic of the<\/option><option value=\"Congo, Republic of the\">Congo, Republic of the<\/option><option value=\"Cook Islands\">Cook Islands<\/option><option value=\"Coral Sea Islands\">Coral Sea Islands<\/option><option value=\"Costa Rica\">Costa Rica<\/option><option value=\"Cote d'Ivoire\">Cote d'Ivoire<\/option><option value=\"Croatia\">Croatia<\/option><option value=\"Cuba\">Cuba<\/option><option value=\"Curacao\">Curacao<\/option><option value=\"Cyprus\">Cyprus<\/option><option value=\"Czech Republic\">Czech Republic<\/option><option value=\"Denmark\">Denmark<\/option><option value=\"Djibouti\">Djibouti<\/option><option value=\"Dominica\">Dominica<\/option><option value=\"Dominican Republic\">Dominican Republic<\/option><option value=\"East Timor\">East Timor<\/option><option value=\"Ecuador\">Ecuador<\/option><option value=\"Egypt\">Egypt<\/option><option value=\"El Salvador\">El Salvador<\/option><option value=\"Equatorial Guinea\">Equatorial Guinea<\/option><option value=\"Eritrea\">Eritrea<\/option><option value=\"Estonia\">Estonia<\/option><option value=\"Ethiopia\">Ethiopia<\/option><option value=\"Europa Island\">Europa Island<\/option><option value=\"Falkland Islands\">Falkland Islands<\/option><option value=\"Faroe Islands\">Faroe Islands<\/option><option value=\"Fiji\">Fiji<\/option><option value=\"Finland\">Finland<\/option><option value=\"France\">France<\/option><option value=\"French Guiana\">French Guiana<\/option><option value=\"French Polynesia\">French Polynesia<\/option><option value=\"French Southern and Antarctic Lands\">French Southern and Antarctic Lands<\/option><option value=\"Gabon\">Gabon<\/option><option value=\"Gaza Strip\">Gaza Strip<\/option><option value=\"Georgia\">Georgia<\/option><option value=\"Germany\">Germany<\/option><option value=\"Ghana\">Ghana<\/option><option value=\"Gibraltar\">Gibraltar<\/option><option value=\"Glorioso Islands\">Glorioso Islands<\/option><option value=\"Greece\">Greece<\/option><option value=\"Greenland\">Greenland<\/option><option value=\"Grenada\">Grenada<\/option><option value=\"Guadeloupe\">Guadeloupe<\/option><option value=\"Guam\">Guam<\/option><option value=\"Guatemala\">Guatemala<\/option><option value=\"Guernsey\">Guernsey<\/option><option value=\"Guinea\">Guinea<\/option><option value=\"Guinea-Bissau\">Guinea-Bissau<\/option><option value=\"Guyana\">Guyana<\/option><option value=\"Haiti\">Haiti<\/option><option value=\"Heard Island and McDonald Islands\">Heard Island and McDonald Islands<\/option><option value=\"Holy See\">Holy See<\/option><option value=\"Honduras\">Honduras<\/option><option value=\"Hong Kong (SAR)\">Hong Kong (SAR)<\/option><option value=\"Howland Island\">Howland Island<\/option><option value=\"Hungary\">Hungary<\/option><option value=\"Iceland\">Iceland<\/option><option value=\"India\">India<\/option><option value=\"Indonesia\">Indonesia<\/option><option value=\"Iran\">Iran<\/option><option value=\"Iraq\">Iraq<\/option><option value=\"Ireland\">Ireland<\/option><option value=\"Isle of Man\">Isle of Man<\/option><option value=\"Israel\">Israel<\/option><option value=\"Italy\">Italy<\/option><option value=\"Jamaica\">Jamaica<\/option><option value=\"Japan\">Japan<\/option><option value=\"Jarvis Island\">Jarvis Island<\/option><option value=\"Jersey\">Jersey<\/option><option value=\"Johnston Atoll\">Johnston Atoll<\/option><option value=\"Jordan\">Jordan<\/option><option value=\"Juan de Nova Island\">Juan de Nova Island<\/option><option value=\"Kazakhstan\">Kazakhstan<\/option><option value=\"Kenya\">Kenya<\/option><option value=\"Kingman Reef\">Kingman Reef<\/option><option value=\"Kiribati\">Kiribati<\/option><option value=\"Kuwait\">Kuwait<\/option><option value=\"Kyrgyzstan\">Kyrgyzstan<\/option><option value=\"Laos\">Laos<\/option><option value=\"Latvia\">Latvia<\/option><option value=\"Lebanon\">Lebanon<\/option><option value=\"Lesotho\">Lesotho<\/option><option value=\"Liberia\">Liberia<\/option><option value=\"Libya\">Libya<\/option><option value=\"Liechtenstein\">Liechtenstein<\/option><option value=\"Lithuania\">Lithuania<\/option><option value=\"Luxembourg\">Luxembourg<\/option><option value=\"Macau (SAR)\">Macau (SAR)<\/option><option value=\"Madagascar\">Madagascar<\/option><option value=\"Malawi\">Malawi<\/option><option value=\"Malaysia\">Malaysia<\/option><option value=\"Maldives\">Maldives<\/option><option value=\"Mali\">Mali<\/option><option value=\"Malta\">Malta<\/option><option value=\"Marshall Islands\">Marshall Islands<\/option><option value=\"Martinique\">Martinique<\/option><option value=\"Mauritania\">Mauritania<\/option><option value=\"Mauritius\">Mauritius<\/option><option value=\"Mayotte\">Mayotte<\/option><option value=\"Mexico\">Mexico<\/option><option value=\"Micronesia\">Micronesia<\/option><option value=\" Federated States of\"> Federated States of<\/option><option value=\"Midway Islands\">Midway Islands<\/option><option value=\"Moldova\">Moldova<\/option><option value=\"Monaco\">Monaco<\/option><option value=\"Mongolia\">Mongolia<\/option><option value=\"Montenegro\">Montenegro<\/option><option value=\"Montserrat\">Montserrat<\/option><option value=\"Morocco\">Morocco<\/option><option value=\"Mozambique\">Mozambique<\/option><option value=\"Myanmar\">Myanmar<\/option><option value=\"Namibia\">Namibia<\/option><option value=\"Nauru\">Nauru<\/option><option value=\"Navassa Island\">Navassa Island<\/option><option value=\"Nepal\">Nepal<\/option><option value=\"Netherlands\">Netherlands<\/option><option value=\"Netherlands Antilles\">Netherlands Antilles<\/option><option value=\"New Caledonia\">New Caledonia<\/option><option value=\"New Zealand\">New Zealand<\/option><option value=\"Nicaragua\">Nicaragua<\/option><option value=\"Niger\">Niger<\/option><option value=\"Nigeria\">Nigeria<\/option><option value=\"Niue\">Niue<\/option><option value=\"Norfolk Island\">Norfolk Island<\/option><option value=\"North Korea\">North Korea<\/option><option value=\"North Macedonia\">North Macedonia<\/option><option value=\"Northern Mariana Islands\">Northern Mariana Islands<\/option><option value=\"Norway\">Norway<\/option><option value=\"Oman\">Oman<\/option><option value=\"Pakistan\">Pakistan<\/option><option value=\"Palau\">Palau<\/option><option value=\"Palestine\">Palestine<\/option><option value=\"Occupied\">Occupied<\/option><option value=\"Palmyra Atoll\">Palmyra Atoll<\/option><option value=\"Panama\">Panama<\/option><option value=\"Papua New Guinea\">Papua New Guinea<\/option><option value=\"Paraguay\">Paraguay<\/option><option value=\"Peru\">Peru<\/option><option value=\"Philippines\">Philippines<\/option><option value=\"Pitcairn Islands\">Pitcairn Islands<\/option><option value=\"Poland\">Poland<\/option><option value=\"Portugal\">Portugal<\/option><option value=\"Puerto Rico\">Puerto Rico<\/option><option value=\"Qatar\">Qatar<\/option><option value=\"R\u00e9union\">R\u00e9union<\/option><option value=\"Romania\">Romania<\/option><option value=\"Russia\">Russia<\/option><option value=\"Rwanda\">Rwanda<\/option><option value=\"Saint Barth\u00e9lemy\">Saint Barth\u00e9lemy<\/option><option value=\"Saint Helena\">Saint Helena<\/option><option value=\"Saint Kitts and Nevis\">Saint Kitts and Nevis<\/option><option value=\"Saint Lucia\">Saint Lucia<\/option><option value=\"Saint Martin (French part)\">Saint Martin (French part)<\/option><option value=\"Saint Pierre and Miquelon\">Saint Pierre and Miquelon<\/option><option value=\"Saint Vincent and the Grenadines\">Saint Vincent and the Grenadines<\/option><option value=\"San Marino\">San Marino<\/option><option value=\"S\u00e3o Tom\u00e9 and Pr\u00edncipe\">S\u00e3o Tom\u00e9 and Pr\u00edncipe<\/option><option value=\"Saudi Arabia\">Saudi Arabia<\/option><option value=\"Senegal\">Senegal<\/option><option value=\"Serbia\">Serbia<\/option><option value=\"Serbia and Montenegro\">Serbia and Montenegro<\/option><option value=\"Seychelles\">Seychelles<\/option><option value=\"Sierra Leone\">Sierra Leone<\/option><option value=\"Singapore\">Singapore<\/option><option value=\"Sint Maarten\">Sint Maarten<\/option><option value=\"Slovakia\">Slovakia<\/option><option value=\"Slovenia\">Slovenia<\/option><option value=\"Solomon Islands\">Solomon Islands<\/option><option value=\"Somalia\">Somalia<\/option><option value=\"South Africa\">South Africa<\/option><option value=\"South Georgia and the South Sandwich Islands\">South Georgia and the South Sandwich Islands<\/option><option value=\"South Korea\">South Korea<\/option><option value=\"South Sudan\">South Sudan<\/option><option value=\"Spain\">Spain<\/option><option value=\"Spratly Islands\">Spratly Islands<\/option><option value=\"Sri Lanka\">Sri Lanka<\/option><option value=\"Sudan\">Sudan<\/option><option value=\"Suriname\">Suriname<\/option><option value=\"Svalbard and Jan Mayen\">Svalbard and Jan Mayen<\/option><option value=\"Swaziland\">Swaziland<\/option><option value=\"Sweden\">Sweden<\/option><option value=\"Switzerland\">Switzerland<\/option><option value=\"Syria\">Syria<\/option><option value=\"Taiwan\">Taiwan<\/option><option value=\" China\"> China<\/option><option value=\"Tajikistan\">Tajikistan<\/option><option value=\"Tanzania\">Tanzania<\/option><option value=\"Thailand\">Thailand<\/option><option value=\"The Bahamas\">The Bahamas<\/option><option value=\"The Gambia\">The Gambia<\/option><option value=\"Togo\">Togo<\/option><option value=\"Tokelau\">Tokelau<\/option><option value=\"Tonga\">Tonga<\/option><option value=\"Trinidad and Tobago\">Trinidad and Tobago<\/option><option value=\"Tromelin Island\">Tromelin Island<\/option><option value=\"Tunisia\">Tunisia<\/option><option value=\"Turkey\">Turkey<\/option><option value=\"Turkmenistan\">Turkmenistan<\/option><option value=\"Turks and Caicos Islands\">Turks and Caicos Islands<\/option><option value=\"Tuvalu\">Tuvalu<\/option><option value=\"Uganda\">Uganda<\/option><option value=\"Ukraine\">Ukraine<\/option><option value=\"United Arab Emirates\">United Arab Emirates<\/option><option value=\"United Kingdom\">United Kingdom<\/option><option value=\"United States\">United States<\/option><option value=\"United States Minor Outlying Islands\">United States Minor Outlying Islands<\/option><option value=\"Uruguay\">Uruguay<\/option><option value=\"Uzbekistan\">Uzbekistan<\/option><option value=\"Vanuatu\">Vanuatu<\/option><option value=\"Venezuela\">Venezuela<\/option><option value=\"Vietnam\">Vietnam<\/option><option value=\"Virgin Islands (US)\">Virgin Islands (US)<\/option><option value=\"Wake Island\">Wake Island<\/option><option value=\"Wallis and Futuna\">Wallis and Futuna<\/option><option value=\"West Bank\">West Bank<\/option><option value=\"Western Sahara\">Western Sahara<\/option><option value=\"Western Samoa\">Western Samoa<\/option><option value=\"World\">World<\/option><option value=\"Yemen\">Yemen<\/option><option value=\"Yugoslavia\">Yugoslavia<\/option><option value=\"Zaire\">Zaire<\/option><option value=\"Zambia\">Zambia<\/option><option value=\"Zimbabwe\">Zimbabwe<\/option>\t\t\t\t\t<\/optgroup>\n <\/select>\n <\/div>\n\n <div class=\"custom-lead-form-div\" style=\"display: grid; grid-template-columns: 1fr 1fr; gap: 20px;\">\n\t\t\t<div>\n\t\t\t\t<label class=\"custom-lead-form-label\" for=\"your_email\">Email:<\/label><br>\n\t\t\t\t<input type=\"email\" name=\"email\" class=\"full-width-input custom-lead-form-input\" required>\n\t\t\t<\/div>\n\n\t\t\t<div>\n\t\t\t\t<label class=\"custom-lead-form-label\" for=\"phone_number\">Phone Number:<\/label><br>\n\t\t\t\t<div class=\"phone-input-wrapper\">\n\t\t\t\t\t<span id=\"country-code-display\">+60<\/span>\n\t\t\t\t\t<input type=\"text\" id=\"phone_number_input\" placeholder=\"123456789\" required>\n\t\t\t\t\t<input type=\"hidden\" name=\"phone_number\" id=\"final_phone_number\">\n\t\t\t\t<\/div>\n\t\t\t<\/div>\n \t<\/div>\n\n\t\t<div id=\"interest-error\" style=\"color: red; display: none;\">\n\t\t\tPlease select at least one interest.\n\t\t<\/div>\n\n\t\t<div id=\"interest-group\" class=\"custom-lead-form-div\">\n\t\t\t<p>\n\t\t\t\t<label class=\"custom-checkbox-label\">I want to (Investor)<\/label><br>\n\t\t\t\t<label class=\"custom-checkbox-label\"><input type=\"checkbox\" name=\"lead_type[]\" value=\"invest\"> Invest<\/label><br>\n\t\t\t\t<label class=\"custom-checkbox-label\"><input type=\"checkbox\" name=\"lead_type[]\" value=\"buy\"> Buy<\/label><br>\n\t\t\t\t<label class=\"custom-checkbox-label\"><input type=\"checkbox\" name=\"lead_type[]\" value=\"sell\"> Sell<\/label><br>\n\t\t\t<\/p>\n\t\t<\/div>\n\n\t\t<div class=\"custom-lead-form-div\">\n\t\t\t<label class=\"custom-checkbox-label\"><input type=\"checkbox\" name=\"consent_agreement\" value=\"1\" required> I give my consent to share my information to submit this form. For more details on our data practices, please refer to our <a href=\"https:\/\/www.iqiglobal.com\/privacy-policy\">Privacy Policy.<\/a><\/label><br>\n\t\t\t<input type=\"hidden\" name=\"newsletter\" value=\"0\">\n\t\t\t<label class=\"custom-checkbox-label\"><input type=\"checkbox\" name=\"newsletter\" value=\"1\"> I want the latest property updates, marketing emails, and newsletters from IQI Global by subscribing to IQI Global mailing list<\/label><br>\n\t\t<\/div>\n\n\t\t<input type=\"hidden\" name=\"g-recaptcha-response\" id=\"g-recaptcha-response\">\n\n\n <p>\n <button type=\"submit\">Submit<\/button>\n <\/p>\n <\/form>\n\n\t<style>\n .full-width-input {\n width: 100%;\n padding: 8px;\n box-sizing: border-box;\n }\n\t\t.custom-lead-form-div {\n\t\t\tmargin-bottom: 20px;\n\t\t}\n\t\t.custom-lead-form-input {\n\t\t\tpadding: 8px 12px !important;\n\t\t\tborder-color: var(--theme-color-input_bd_color) !important;\n\t\t}\n\t\t.custom-lead-form-label {\n\t\t\tfont-size: 15px !important;\n\t\t\tfont-weight: 500 !important;\n\t\t}\n\n\t\t.custom-checkbox-label {\n\t\t\tfont-size: 15px !important;\n\t\t\tfont-weight: 400 !important;\n\t\t}\n\n\t\t.phone-input-wrapper {\n\t\t\tdisplay: flex;\n\t\t\talign-items: center;\n\t\t\tborder: 1px solid #ffb199; \/* soft orange border *\/\n\t\t\tborder-radius: 30px;\n\t\t\toverflow: hidden;\n\t\t\tbackground-color: #fff9f8;\n\t\t\tmax-width: 100%;\n\t\t}\n\n\t\t#country-code-display {\n\t\t\tpadding: 10px 14px;\n\t\t\tbackground-color: #f3f3f3;\n\t\t\tborder-right: 1px solid #ffb199;\n\t\t\tfont-size: 16px;\n\t\t\tcolor: #333;\n\t\t\twhite-space: nowrap;\n\t\t}\n\n\t\t#phone_number_input {\n\t\t\tflex: 1;\n\t\t\tborder: none;\n\t\t\tpadding: 10px 14px;\n\t\t\tfont-size: 16px;\n\t\t\tbackground-color: transparent;\n\t\t\toutline: none;\n\t\t}\n <\/style>\n <script src=\"https:\/\/www.google.com\/recaptcha\/api.js?render=6Lc2VuIpAAAAAI6-27GyE-SCtgCMwOPptgZOw8gC\"><\/script>\n\t<script>\n\t\tconst malaysianStates = [\"Johor\",\"Kedah\",\"Kuala Lumpur\",\"Melaka\",\"Negeri Sembilan\",\"Pahang\",\"Penang\",\"Perak\",\"Perlis\",\"Sabah\",\"Sarawak\",\"Selangor\",\"Terengganu\"];\n\n\t\tdocument.addEventListener('DOMContentLoaded', function () {\n\t\t\tconst locationSelect = document.querySelector('select[name=\"location\"]');\n\t\t\tconst countryCodeDisplay = document.getElementById('country-code-display');\n\t\t\tconst phoneInput = document.getElementById('phone_number_input');\n\t\t\tconst finalPhoneInput = document.getElementById('final_phone_number');\n\t\t\tconst form = document.getElementById('custom-lead-form');\n\t\t\tconst error = document.getElementById('interest-error');\n\n\t\t\tfunction updateFinalPhoneNumber() {\n\t\t\t\tconst code = countryCodeDisplay.textContent || '';\n\t\t\t\tconst number = phoneInput.value.trim();\n\t\t\t\tfinalPhoneInput.value = code + number;\n\t\t\t}\n\n\t\t\tlocationSelect.addEventListener('change', function () {\n\t\t\t\tconst selectedState = this.value;\n\n\t\t\t\t\/\/ If not Malaysian state\n\t\t\t\tif (!malaysianStates.includes(selectedState)) {\n\t\t\t\t\tcountryCodeDisplay.style.display = 'none';\n\t\t\t\t\tcountryCodeDisplay.textContent = '';\n\t\t\t\t\tupdateFinalPhoneNumber();\n\t\t\t\t\treturn;\n\t\t\t\t}\n\n\t\t\t\t\/\/ Malaysian state \u2014 show +60\n\t\t\t\tcountryCodeDisplay.style.display = 'block';\n\t\t\t\tcountryCodeDisplay.textContent = '+60';\n\t\t\t\tupdateFinalPhoneNumber();\n\t\t\t});\n\n\t\t\tphoneInput.addEventListener('input', updateFinalPhoneNumber);\n\n\t\t\tform.addEventListener('submit', function (e) {\n\t\t\t\te.preventDefault(); \/\/ \u2705 Prevent default submission first\n\n\t\t\t\tconst checkboxes = form.querySelectorAll('input[name=\"lead_type[]\"]');\n\t\t\t\tconst isChecked = Array.from(checkboxes).some(checkbox => checkbox.checked);\n\n\t\t\t\tif (!isChecked) {\n\t\t\t\t\terror.style.display = 'block';\n\t\t\t\t\treturn; \/\/ stop here if validation fails\n\t\t\t\t} else {\n\t\t\t\t\terror.style.display = 'none';\n\t\t\t\t}\n\n\t\t\t\t\/\/ \u2705 Now run reCAPTCHA v3\n\t\t\t\tgrecaptcha.ready(function () {\n\t\t\t\t\tgrecaptcha.execute('6Lc2VuIpAAAAAI6-27GyE-SCtgCMwOPptgZOw8gC', { action: 'submit' })\n\t\t\t\t\t\t.then(function (token) {\n\t\t\t\t\t\t\tdocument.getElementById('g-recaptcha-response').value = token;\n\t\t\t\t\t\t\tform.submit(); \/\/ \u2705 Safe manual submission\n\t\t\t\t\t\t});\n\t\t\t\t});\n\t\t\t});\n\t\t});\n\t<\/script>\n\n \n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity is-style-wide sc_height_tiny\">\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-frequently-asked-questions\">Frequently Asked Questions<\/h2>\n\n\n\n<div class=\"schema-faq wp-block-yoast-faq-block\"><div class=\"schema-faq-section\" id=\"faq-question-1787824517928\"><strong class=\"schema-faq-question\">Do I need to declare rental income if I only rent out one room?<\/strong> <p class=\"schema-faq-answer\">Yes. There is no minimum threshold for rental income in Malaysia. Income from letting a single room is taxable and must be declared in your annual return.<\/p> <\/div> <div class=\"schema-faq-section\" id=\"faq-question-1787824530698\"><strong class=\"schema-faq-question\">Can I deduct my full monthly mortgage payment from rental income?<\/strong> <p class=\"schema-faq-answer\">No. Only the interest portion of your loan repayment is deductible. The principal portion is a capital repayment and cannot be claimed. Your bank’s annual loan statement shows the split.<\/p> <\/div> <div class=\"schema-faq-section\" id=\"faq-question-1787824544654\"><strong class=\"schema-faq-question\">Is there still a 50% tax exemption on residential rental income in Malaysia?<\/strong> <p class=\"schema-faq-answer\">No. The 50% exemption on statutory rental income for residential property let at up to RM2,000 a month was gazetted under the Income Tax (Exemption) (No. 2) Order 2019 and applied to the 2018 year. It has expired. For YA 2025 and YA 2026 there is no blanket exemption.<\/p> <\/div> <div class=\"schema-faq-section\" id=\"faq-question-1787824561154\"><strong class=\"schema-faq-question\">How is rental income taxed in Malaysia?<\/strong> <p class=\"schema-faq-answer\">Rental income is taxed on a net basis. You deduct allowable expenses from your gross rent, and the resulting net figure is added to your other income and taxed at progressive rates of 0% to 30% for residents, or a flat 30% for non-residents.<\/p> <\/div> <div class=\"schema-faq-section\" id=\"faq-question-1787824576761\"><strong class=\"schema-faq-question\">Can I claim the agent commission for finding my tenant?<\/strong> <p class=\"schema-faq-answer\">Only for renewals and replacement tenants. Commission, legal fees and advertising costs incurred to secure your very first tenant are treated as initial expenses to create the income source and are not deductible.<\/p> <\/div> <div class=\"schema-faq-section\" id=\"faq-question-1787824593823\"><strong class=\"schema-faq-question\">What happens if my rental property makes a loss?<\/strong> <p class=\"schema-faq-answer\">Under Section 4(d), an overall rental loss cannot be carried forward to future years and cannot be offset against your salary. You should still declare the loss in your return.<\/p> <\/div> <div class=\"schema-faq-section\" id=\"faq-question-1787824609525\"><strong class=\"schema-faq-question\">Do I have to charge SST on the rent I collect?<\/strong> <p class=\"schema-faq-answer\">Residential lettings are generally outside the scope of service tax. Commercial rental and leasing services fall under Group K, with registration required once taxable rental turnover exceeds RM1 million over 12 months. The rate fell from 8% to 6% on 1 January 2026. How the property is actually used matters more than its title.<\/p> <\/div> <div class=\"schema-faq-section\" id=\"faq-question-1787824636339\"><strong class=\"schema-faq-question\">How are non-resident landlords taxed on Malaysian rental income?<\/strong> <p class=\"schema-faq-answer\">Non-residents are taxed at a flat 30% and cannot claim personal reliefs or rebates, but they can still deduct allowable rental expenses. Non-residents file Form M.<\/p> <\/div> <div class=\"schema-faq-section\" id=\"faq-question-1787824665363\"><strong class=\"schema-faq-question\">I am a foreigner living in Malaysia on my rental income. Do I pay the flat 30%?<\/strong> <p class=\"schema-faq-answer\">Probably not. Tax residency in Malaysia is decided by physical presence, mainly the 182-day test under Section 7 of the Income Tax Act 1967, not by citizenship or visa type. A foreigner present in Malaysia for 182 days or more in the calendar year is a tax resident and is taxed at the same progressive rates of 0% to 30% as a Malaysian, with the same deductions and access to personal reliefs. The flat 30% applies to owners who live abroad and fall short of 182 days.<\/p> <\/div> <div class=\"schema-faq-section\" id=\"faq-question-1787824772242\"><strong class=\"schema-faq-question\">When is the deadline to file rental income tax?<\/strong> <p class=\"schema-faq-answer\">Form BE is due 30 April, with e-Filing grace usually extended to 15 May. Form B is due 30 June, with grace usually to 15 July. Confirm the exact dates on LHDN’s MyTax portal each year.<\/p> <\/div> <div class=\"schema-faq-section\" id=\"faq-question-1787824874008\"><strong class=\"schema-faq-question\">What if I have never declared my rental income before?<\/strong> <p class=\"schema-faq-answer\">Filing a voluntary amendment before LHDN identifies the omission is generally treated more leniently than a discovery on their side. The tax owed still has to be paid. A licensed tax agent can file the revised returns and represent you.<\/p> <\/div> <div class=\"schema-faq-section\" id=\"faq-question-1791357359905\"><strong class=\"schema-faq-question\">How is Airbnb or short-term rental income taxed in Malaysia?<\/strong> <p class=\"schema-faq-answer\">Airbnb and short-term rental income is <strong>taxable from the first ringgit on net income<\/strong>. Most hosts fall under <strong>Section 4(d) rental income<\/strong>, while properties with comprehensive and active services may qualify as <strong>Section 4(a) business income<\/strong>, which affects filing requirements, capital allowances and loss carry-forward.<\/p> <\/div> <div class=\"schema-faq-section\" id=\"faq-question-1791357409367\"><strong class=\"schema-faq-question\">Do I need a licence to run an Airbnb in Malaysia?<\/strong> <p class=\"schema-faq-answer\">It depends on your <strong>state, local council and building rules<\/strong>. Malaysia has no single nationwide short-term rental law, but local licensing may apply. For example, <strong>Penang requires private homestay operators to obtain a licence from MBPP or MBSP<\/strong>, while strata by-laws may also restrict short-term stays.<\/p> <\/div> <div class=\"schema-faq-section\" id=\"faq-question-1791357463424\"><strong class=\"schema-faq-question\">Do short-term rental hosts have to charge service tax or tourism tax?<\/strong> <p class=\"schema-faq-answer\"><strong>Service tax is 8%<\/strong> for accommodation operators exceeding <strong>RM500,000 in taxable turnover over 12 months<\/strong>. <strong>Tourism tax is RM10 per room per night for foreign guests<\/strong>, while Malaysian citizens and permanent residents are exempt. For platform bookings, the platform generally collects and remits the tourism tax.<\/p> <\/div> <\/div>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity is-style-wide sc_height_small\">\n\n\n\n<p class=\"has-small-font-size\">This rental income tax guide is general information, not tax advice. Rates, thresholds and phase dates change, and several were revised during 2026. Verify against LHDN and Royal Malaysian Customs before you file or invoice, and speak to a licensed tax agent about your own position.<\/p>\n\n\n\n<p>Continue reading:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><a href=\"https:\/\/iqiglobal.com\/blog\/what-are-the-hidden-costs-of-owning-a-rental-property\/\" target=\"_blank\" rel=\"noreferrer noopener\"><strong>What Are The Hidden Costs of Owning a Rental Property?<\/strong><\/a><\/li>\n\n\n\n<li><a href=\"https:\/\/iqiglobal.com\/blog\/guide-to-property-taxes-in-malaysia\/\" target=\"_blank\" rel=\"noreferrer noopener\"><strong>A Complete Guide to Property Taxes in Malaysia for Homeowners<\/strong><\/a><\/li>\n\n\n\n<li><a href=\"https:\/\/iqiglobal.com\/blog\/tenancy-agreement-in-malaysia\/\" target=\"_blank\" rel=\"noreferrer noopener\"><strong>5 Things You Should Know About Tenancy Agreements in Malaysia<\/strong><\/a><\/li>\n\n\n\n<li><a href=\"https:\/\/iqiglobal.com\/blog\/damansara-rental-yield\/\" target=\"_blank\" rel=\"noreferrer noopener\"><strong>Damansara Rental Yield Guide for Property Investors<\/strong><\/a><\/li>\n\n\n\n<li><a href=\"https:\/\/iqiglobal.com\/blog\/complete-guide-to-purchasing-property-in-malaysia\/\" target=\"_blank\" rel=\"noreferrer noopener\"><strong>A Comprehensive Guide On Buying Property In Malaysia<\/strong><\/a><\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading has-small-font-size\">Sources<\/h3>\n\n\n\n<ul class=\"wp-block-list has-small-font-size\">\n<li>LHDN, Public Ruling No. 12\/2018, Income from Letting of Real Property, 19 December 2018 (summary via <a href=\"https:\/\/www.ctim.org.my\/file\/2019\/TECH-DT\/e-CTIM%20TECH-DT%20116-2019%20-%20Public%20Ruling%20No_12-2018%20-%20Income%20from%20Letting%20of%20Real%20Property(Summary)%20(201219)(F).pdf\" target=\"_blank\" rel=\"noreferrer noopener\">CTIM<\/a>)<\/li>\n\n\n\n<li><a href=\"https:\/\/airbtics.com\/short-term-rental-market-report-2025-malaysia\" target=\"_blank\" rel=\"noreferrer noopener\">Airbtics, Malaysia Short-Term Rental Market Review 2025<\/a>, 22 January 2026<\/li>\n\n\n\n<li>Airbtics city data for <a href=\"https:\/\/airbtics.com\/annual-airbnb-revenue-in-kuala-lumpur-malaysia\" target=\"_blank\" rel=\"noreferrer noopener\">Kuala Lumpur<\/a>, <a href=\"https:\/\/airbtics.com\/annual-airbnb-revenue-in-johor-bahru-malaysia\" target=\"_blank\" rel=\"noreferrer noopener\">Johor Bahru<\/a>, <a href=\"https:\/\/airbtics.com\/annual-airbnb-revenue-in-kota-kinabalu-malaysia\" target=\"_blank\" rel=\"noreferrer noopener\">Kota Kinabalu<\/a> and <a href=\"https:\/\/airbtics.com\/annual-airbnb-revenue-in-george-town-malaysia\" target=\"_blank\" rel=\"noreferrer noopener\">George Town<\/a>, updated 12 March 2026<\/li>\n\n\n\n<li><a href=\"https:\/\/www.thevibes.com\/articles\/news\/121205\/malaysia-records-42.19-million-visitors-last-year-says-minister\" target=\"_blank\" rel=\"noreferrer noopener\">The Vibes, Malaysia records 42.19 million visitors last year<\/a>, 28 March 2026<\/li>\n\n\n\n<li><a href=\"https:\/\/bernama.com\/en\/general\/news.php?id=2597361\" target=\"_blank\" rel=\"noreferrer noopener\">Bernama, Penang first state to enforce private homestay by-law<\/a>, 21 August 2026<\/li>\n\n\n\n<li><a href=\"https:\/\/www.malaymail.com\/news\/malaysia\/2026\/08\/21\/airbnb-crackdown-penang-introduces-new-licensing-laws-for-short-term-rentals\/232183\" target=\"_blank\" rel=\"noreferrer noopener\">Malay Mail, Penang introduces new licensing laws for short-term rentals<\/a>, 21 August 2026<\/li>\n\n\n\n<li><a href=\"https:\/\/www.thevibes.com\/articles\/news\/112525\/motac-short-term-rental-premises-must-get-local-operating-licence-before-registration\" target=\"_blank\" rel=\"noreferrer noopener\">The Vibes, MOTAC: short-term rental premises must get local operating licence<\/a>, 8 September 2025<\/li>\n\n\n\n<li><a href=\"https:\/\/www.nst.com.my\/news\/nation\/2025\/06\/1226123\/short-term-rental-rules-under-review-protect-consumers\" target=\"_blank\" rel=\"noreferrer noopener\">New Straits Times, Short-term rental rules under review to protect consumers<\/a>, 5 June 2025<\/li>\n\n\n\n<li><a href=\"https:\/\/www.pwc.com\/my\/en\/publications\/mtb\/service-tax.html\" target=\"_blank\" rel=\"noreferrer noopener\">PwC Malaysia, Malaysian Tax Booklet 2025\/2026: Service Tax<\/a><\/li>\n\n\n\n<li><a href=\"https:\/\/www.skrine.com\/insights\/alerts\/april-2021\/airbnb-hotels-com-booking-com-%E2%80%93-time-for-operators\" target=\"_blank\" rel=\"noreferrer noopener\">Skrine, Tourism tax and digital platform service providers<\/a>, April 2021<\/li>\n<\/ul>\n\n\n\n<p><\/p>\n<\/body><\/html>\n","protected":false},"excerpt":{"rendered":"<p>Rental income tax in Malaysia is charged on net rent, not gross. See the deductions, the 6% SST change, and real RM calculations for landlords.<\/p>\n","protected":false},"author":39,"featured_media":133039,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"content-type":"","postBodyCss":"","postBodyMargin":[],"postBodyPadding":[],"postBodyBackground":{"backgroundType":"classic","gradient":""},"footnotes":""},"categories":[222],"tags":[867,12975,9296,231,252,10769,12726,224,12110,10759],"class_list":["post-106695","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-market-insights","tag-airbnb-cn","tag-gmi-guides-my","tag-income-tax","tag-iqi-en","tag-iqi-global","tag-property-renting","tag-property-taxes","tag-real-estate","tag-rental-income-tax","tag-tax"],"yoast_head":"\n<title>Rental Income Tax Malaysia 2026: What Landlords Pay<\/title>\n<meta name=\"description\" content=\"Rental income tax in Malaysia is charged on net rent, not gross. 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Global\"},\"image\":{\"@id\":\"https:\\\/\\\/iqiglobal.com\\\/blog\\\/#\\\/schema\\\/logo\\\/image\\\/\"},\"sameAs\":[\"https:\\\/\\\/www.facebook.com\\\/IqiGlobal\",\"https:\\\/\\\/x.com\\\/IQIGlobal\",\"https:\\\/\\\/www.instagram.com\\\/iqiglobal\\\/\",\"https:\\\/\\\/tiktok.com\\\/@iqiglobal?lang=en\",\"https:\\\/\\\/www.linkedin.com\\\/company\\\/iqi-group\\\/\"]},{\"@type\":\"Person\",\"@id\":\"https:\\\/\\\/iqiglobal.com\\\/blog\\\/#\\\/schema\\\/person\\\/e09b60d989ede33c5891f18d445480ef\",\"name\":\"Amir Asraf Lee\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\\\/\\\/secure.gravatar.com\\\/avatar\\\/9d6bfceba0c12cd607cf3acab7d9addc6eb921d54c8fb3490d6c8b1cc6d71f28?s=96&d=mm&r=g\",\"url\":\"https:\\\/\\\/secure.gravatar.com\\\/avatar\\\/9d6bfceba0c12cd607cf3acab7d9addc6eb921d54c8fb3490d6c8b1cc6d71f28?s=96&d=mm&r=g\",\"contentUrl\":\"https:\\\/\\\/secure.gravatar.com\\\/avatar\\\/9d6bfceba0c12cd607cf3acab7d9addc6eb921d54c8fb3490d6c8b1cc6d71f28?s=96&d=mm&r=g\",\"caption\":\"Amir Asraf Lee\"},\"description\":\"Amir Asraf is a digital marketing and content strategist with 8+ years of experience in SEO, branding, content and real estate. He leads Content & SEO at Juwai IQI, exploring AI, search and digital growth. Outside work, he enjoys travel, music, theatre, fitness and sharing unconventional perspectives on life.\",\"sameAs\":[\"https:\\\/\\\/www.linkedin.com\\\/in\\\/amirasraflee\\\/\"],\"birthDate\":\"1998-05-15\",\"gender\":\"Male\",\"knowsAbout\":[\"SEO & Content\"],\"knowsLanguage\":[\"English\",\"Bahasa Malaysia\"],\"jobTitle\":\"Senior Team Lead Content & SEO (Growth & Branding)\",\"worksFor\":\"IQI Global\",\"url\":\"https:\\\/\\\/iqiglobal.com\\\/blog\\\/author\\\/amir-asraf-lee\\\/\"},{\"@type\":\"Question\",\"@id\":\"https:\\\/\\\/iqiglobal.com\\\/blog\\\/rental-income-tax-guide\\\/#faq-question-1787824517928\",\"position\":1,\"url\":\"https:\\\/\\\/iqiglobal.com\\\/blog\\\/rental-income-tax-guide\\\/#faq-question-1787824517928\",\"name\":\"Do I need to declare rental income if I only rent out one room?\",\"answerCount\":1,\"acceptedAnswer\":{\"@type\":\"Answer\",\"text\":\"Yes. There is no minimum threshold for rental income in Malaysia. Income from letting a single room is taxable and must be declared in your annual return.\",\"inLanguage\":\"en-US\"},\"inLanguage\":\"en-US\"},{\"@type\":\"Question\",\"@id\":\"https:\\\/\\\/iqiglobal.com\\\/blog\\\/rental-income-tax-guide\\\/#faq-question-1787824530698\",\"position\":2,\"url\":\"https:\\\/\\\/iqiglobal.com\\\/blog\\\/rental-income-tax-guide\\\/#faq-question-1787824530698\",\"name\":\"Can I deduct my full monthly mortgage payment from rental income?\",\"answerCount\":1,\"acceptedAnswer\":{\"@type\":\"Answer\",\"text\":\"No. Only the interest portion of your loan repayment is deductible. The principal portion is a capital repayment and cannot be claimed. Your bank's annual loan statement shows the split.\",\"inLanguage\":\"en-US\"},\"inLanguage\":\"en-US\"},{\"@type\":\"Question\",\"@id\":\"https:\\\/\\\/iqiglobal.com\\\/blog\\\/rental-income-tax-guide\\\/#faq-question-1787824544654\",\"position\":3,\"url\":\"https:\\\/\\\/iqiglobal.com\\\/blog\\\/rental-income-tax-guide\\\/#faq-question-1787824544654\",\"name\":\"Is there still a 50% tax exemption on residential rental income in Malaysia?\",\"answerCount\":1,\"acceptedAnswer\":{\"@type\":\"Answer\",\"text\":\"No. The 50% exemption on statutory rental income for residential property let at up to RM2,000 a month was gazetted under the Income Tax (Exemption) (No. 2) Order 2019 and applied to the 2018 year. It has expired. For YA 2025 and YA 2026 there is no blanket exemption.\",\"inLanguage\":\"en-US\"},\"inLanguage\":\"en-US\"},{\"@type\":\"Question\",\"@id\":\"https:\\\/\\\/iqiglobal.com\\\/blog\\\/rental-income-tax-guide\\\/#faq-question-1787824561154\",\"position\":4,\"url\":\"https:\\\/\\\/iqiglobal.com\\\/blog\\\/rental-income-tax-guide\\\/#faq-question-1787824561154\",\"name\":\"How is rental income taxed in Malaysia?\",\"answerCount\":1,\"acceptedAnswer\":{\"@type\":\"Answer\",\"text\":\"Rental income is taxed on a net basis. You deduct allowable expenses from your gross rent, and the resulting net figure is added to your other income and taxed at progressive rates of 0% to 30% for residents, or a flat 30% for non-residents.\",\"inLanguage\":\"en-US\"},\"inLanguage\":\"en-US\"},{\"@type\":\"Question\",\"@id\":\"https:\\\/\\\/iqiglobal.com\\\/blog\\\/rental-income-tax-guide\\\/#faq-question-1787824576761\",\"position\":5,\"url\":\"https:\\\/\\\/iqiglobal.com\\\/blog\\\/rental-income-tax-guide\\\/#faq-question-1787824576761\",\"name\":\"Can I claim the agent commission for finding my tenant?\",\"answerCount\":1,\"acceptedAnswer\":{\"@type\":\"Answer\",\"text\":\"Only for renewals and replacement tenants. Commission, legal fees and advertising costs incurred to secure your very first tenant are treated as initial expenses to create the income source and are not deductible.\",\"inLanguage\":\"en-US\"},\"inLanguage\":\"en-US\"},{\"@type\":\"Question\",\"@id\":\"https:\\\/\\\/iqiglobal.com\\\/blog\\\/rental-income-tax-guide\\\/#faq-question-1787824593823\",\"position\":6,\"url\":\"https:\\\/\\\/iqiglobal.com\\\/blog\\\/rental-income-tax-guide\\\/#faq-question-1787824593823\",\"name\":\"What happens if my rental property makes a loss?\",\"answerCount\":1,\"acceptedAnswer\":{\"@type\":\"Answer\",\"text\":\"Under Section 4(d), an overall rental loss cannot be carried forward to future years and cannot be offset against your salary. You should still declare the loss in your return.\",\"inLanguage\":\"en-US\"},\"inLanguage\":\"en-US\"},{\"@type\":\"Question\",\"@id\":\"https:\\\/\\\/iqiglobal.com\\\/blog\\\/rental-income-tax-guide\\\/#faq-question-1787824609525\",\"position\":7,\"url\":\"https:\\\/\\\/iqiglobal.com\\\/blog\\\/rental-income-tax-guide\\\/#faq-question-1787824609525\",\"name\":\"Do I have to charge SST on the rent I collect?\",\"answerCount\":1,\"acceptedAnswer\":{\"@type\":\"Answer\",\"text\":\"Residential lettings are generally outside the scope of service tax. Commercial rental and leasing services fall under Group K, with registration required once taxable rental turnover exceeds RM1 million over 12 months. The rate fell from 8% to 6% on 1 January 2026. How the property is actually used matters more than its title.\",\"inLanguage\":\"en-US\"},\"inLanguage\":\"en-US\"},{\"@type\":\"Question\",\"@id\":\"https:\\\/\\\/iqiglobal.com\\\/blog\\\/rental-income-tax-guide\\\/#faq-question-1787824636339\",\"position\":8,\"url\":\"https:\\\/\\\/iqiglobal.com\\\/blog\\\/rental-income-tax-guide\\\/#faq-question-1787824636339\",\"name\":\"How are non-resident landlords taxed on Malaysian rental income?\",\"answerCount\":1,\"acceptedAnswer\":{\"@type\":\"Answer\",\"text\":\"Non-residents are taxed at a flat 30% and cannot claim personal reliefs or rebates, but they can still deduct allowable rental expenses. Non-residents file Form M.\",\"inLanguage\":\"en-US\"},\"inLanguage\":\"en-US\"},{\"@type\":\"Question\",\"@id\":\"https:\\\/\\\/iqiglobal.com\\\/blog\\\/rental-income-tax-guide\\\/#faq-question-1787824665363\",\"position\":9,\"url\":\"https:\\\/\\\/iqiglobal.com\\\/blog\\\/rental-income-tax-guide\\\/#faq-question-1787824665363\",\"name\":\"I am a foreigner living in Malaysia on my rental income. Do I pay the flat 30%?\",\"answerCount\":1,\"acceptedAnswer\":{\"@type\":\"Answer\",\"text\":\"Probably not. Tax residency in Malaysia is decided by physical presence, mainly the 182-day test under Section 7 of the Income Tax Act 1967, not by citizenship or visa type. A foreigner present in Malaysia for 182 days or more in the calendar year is a tax resident and is taxed at the same progressive rates of 0% to 30% as a Malaysian, with the same deductions and access to personal reliefs. 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Income from letting a single room is taxable and must be declared in your annual return.","inLanguage":"en-US"},"inLanguage":"en-US"},{"@type":"Question","@id":"https:\/\/iqiglobal.com\/blog\/rental-income-tax-guide\/#faq-question-1787824530698","position":2,"url":"https:\/\/iqiglobal.com\/blog\/rental-income-tax-guide\/#faq-question-1787824530698","name":"Can I deduct my full monthly mortgage payment from rental income?","answerCount":1,"acceptedAnswer":{"@type":"Answer","text":"No. Only the interest portion of your loan repayment is deductible. The principal portion is a capital repayment and cannot be claimed. Your bank's annual loan statement shows the split.","inLanguage":"en-US"},"inLanguage":"en-US"},{"@type":"Question","@id":"https:\/\/iqiglobal.com\/blog\/rental-income-tax-guide\/#faq-question-1787824544654","position":3,"url":"https:\/\/iqiglobal.com\/blog\/rental-income-tax-guide\/#faq-question-1787824544654","name":"Is there still a 50% tax exemption on residential rental income in Malaysia?","answerCount":1,"acceptedAnswer":{"@type":"Answer","text":"No. The 50% exemption on statutory rental income for residential property let at up to RM2,000 a month was gazetted under the Income Tax (Exemption) (No. 2) Order 2019 and applied to the 2018 year. It has expired. For YA 2025 and YA 2026 there is no blanket exemption.","inLanguage":"en-US"},"inLanguage":"en-US"},{"@type":"Question","@id":"https:\/\/iqiglobal.com\/blog\/rental-income-tax-guide\/#faq-question-1787824561154","position":4,"url":"https:\/\/iqiglobal.com\/blog\/rental-income-tax-guide\/#faq-question-1787824561154","name":"How is rental income taxed in Malaysia?","answerCount":1,"acceptedAnswer":{"@type":"Answer","text":"Rental income is taxed on a net basis. You deduct allowable expenses from your gross rent, and the resulting net figure is added to your other income and taxed at progressive rates of 0% to 30% for residents, or a flat 30% for non-residents.","inLanguage":"en-US"},"inLanguage":"en-US"},{"@type":"Question","@id":"https:\/\/iqiglobal.com\/blog\/rental-income-tax-guide\/#faq-question-1787824576761","position":5,"url":"https:\/\/iqiglobal.com\/blog\/rental-income-tax-guide\/#faq-question-1787824576761","name":"Can I claim the agent commission for finding my tenant?","answerCount":1,"acceptedAnswer":{"@type":"Answer","text":"Only for renewals and replacement tenants. Commission, legal fees and advertising costs incurred to secure your very first tenant are treated as initial expenses to create the income source and are not deductible.","inLanguage":"en-US"},"inLanguage":"en-US"},{"@type":"Question","@id":"https:\/\/iqiglobal.com\/blog\/rental-income-tax-guide\/#faq-question-1787824593823","position":6,"url":"https:\/\/iqiglobal.com\/blog\/rental-income-tax-guide\/#faq-question-1787824593823","name":"What happens if my rental property makes a loss?","answerCount":1,"acceptedAnswer":{"@type":"Answer","text":"Under Section 4(d), an overall rental loss cannot be carried forward to future years and cannot be offset against your salary. You should still declare the loss in your return.","inLanguage":"en-US"},"inLanguage":"en-US"},{"@type":"Question","@id":"https:\/\/iqiglobal.com\/blog\/rental-income-tax-guide\/#faq-question-1787824609525","position":7,"url":"https:\/\/iqiglobal.com\/blog\/rental-income-tax-guide\/#faq-question-1787824609525","name":"Do I have to charge SST on the rent I collect?","answerCount":1,"acceptedAnswer":{"@type":"Answer","text":"Residential lettings are generally outside the scope of service tax. Commercial rental and leasing services fall under Group K, with registration required once taxable rental turnover exceeds RM1 million over 12 months. The rate fell from 8% to 6% on 1 January 2026. How the property is actually used matters more than its title.","inLanguage":"en-US"},"inLanguage":"en-US"},{"@type":"Question","@id":"https:\/\/iqiglobal.com\/blog\/rental-income-tax-guide\/#faq-question-1787824636339","position":8,"url":"https:\/\/iqiglobal.com\/blog\/rental-income-tax-guide\/#faq-question-1787824636339","name":"How are non-resident landlords taxed on Malaysian rental income?","answerCount":1,"acceptedAnswer":{"@type":"Answer","text":"Non-residents are taxed at a flat 30% and cannot claim personal reliefs or rebates, but they can still deduct allowable rental expenses. Non-residents file Form M.","inLanguage":"en-US"},"inLanguage":"en-US"},{"@type":"Question","@id":"https:\/\/iqiglobal.com\/blog\/rental-income-tax-guide\/#faq-question-1787824665363","position":9,"url":"https:\/\/iqiglobal.com\/blog\/rental-income-tax-guide\/#faq-question-1787824665363","name":"I am a foreigner living in Malaysia on my rental income. Do I pay the flat 30%?","answerCount":1,"acceptedAnswer":{"@type":"Answer","text":"Probably not. Tax residency in Malaysia is decided by physical presence, mainly the 182-day test under Section 7 of the Income Tax Act 1967, not by citizenship or visa type. A foreigner present in Malaysia for 182 days or more in the calendar year is a tax resident and is taxed at the same progressive rates of 0% to 30% as a Malaysian, with the same deductions and access to personal reliefs. The flat 30% applies to owners who live abroad and fall short of 182 days.","inLanguage":"en-US"},"inLanguage":"en-US"},{"@type":"Question","@id":"https:\/\/iqiglobal.com\/blog\/rental-income-tax-guide\/#faq-question-1787824772242","position":10,"url":"https:\/\/iqiglobal.com\/blog\/rental-income-tax-guide\/#faq-question-1787824772242","name":"When is the deadline to file rental income tax?","answerCount":1,"acceptedAnswer":{"@type":"Answer","text":"Form BE is due 30 April, with e-Filing grace usually extended to 15 May. Form B is due 30 June, with grace usually to 15 July. Confirm the exact dates on LHDN's MyTax portal each year.","inLanguage":"en-US"},"inLanguage":"en-US"},{"@type":"Question","@id":"https:\/\/iqiglobal.com\/blog\/rental-income-tax-guide\/#faq-question-1787824874008","position":11,"url":"https:\/\/iqiglobal.com\/blog\/rental-income-tax-guide\/#faq-question-1787824874008","name":"What if I have never declared my rental income before?","answerCount":1,"acceptedAnswer":{"@type":"Answer","text":"Filing a voluntary amendment before LHDN identifies the omission is generally treated more leniently than a discovery on their side. The tax owed still has to be paid. A licensed tax agent can file the revised returns and represent you.","inLanguage":"en-US"},"inLanguage":"en-US"},{"@type":"Question","@id":"https:\/\/iqiglobal.com\/blog\/rental-income-tax-guide\/#faq-question-1791357359905","position":12,"url":"https:\/\/iqiglobal.com\/blog\/rental-income-tax-guide\/#faq-question-1791357359905","name":"How is Airbnb or short-term rental income taxed in Malaysia?","answerCount":1,"acceptedAnswer":{"@type":"Answer","text":"Airbnb and short-term rental income is <strong>taxable from the first ringgit on net income<\/strong>. Most hosts fall under <strong>Section 4(d) rental income<\/strong>, while properties with comprehensive and active services may qualify as <strong>Section 4(a) business income<\/strong>, which affects filing requirements, capital allowances and loss carry-forward.","inLanguage":"en-US"},"inLanguage":"en-US"},{"@type":"Question","@id":"https:\/\/iqiglobal.com\/blog\/rental-income-tax-guide\/#faq-question-1791357409367","position":13,"url":"https:\/\/iqiglobal.com\/blog\/rental-income-tax-guide\/#faq-question-1791357409367","name":"Do I need a licence to run an Airbnb in Malaysia?","answerCount":1,"acceptedAnswer":{"@type":"Answer","text":"It depends on your <strong>state, local council and building rules<\/strong>. Malaysia has no single nationwide short-term rental law, but local licensing may apply. For example, <strong>Penang requires private homestay operators to obtain a licence from MBPP or MBSP<\/strong>, while strata by-laws may also restrict short-term stays.","inLanguage":"en-US"},"inLanguage":"en-US"},{"@type":"Question","@id":"https:\/\/iqiglobal.com\/blog\/rental-income-tax-guide\/#faq-question-1791357463424","position":14,"url":"https:\/\/iqiglobal.com\/blog\/rental-income-tax-guide\/#faq-question-1791357463424","name":"Do short-term rental hosts have to charge service tax or tourism tax?","answerCount":1,"acceptedAnswer":{"@type":"Answer","text":"<strong>Service tax is 8%<\/strong> for accommodation operators exceeding <strong>RM500,000 in taxable turnover over 12 months<\/strong>. <strong>Tourism tax is RM10 per room per night for foreign guests<\/strong>, while Malaysian citizens and permanent residents are exempt. For platform bookings, the platform generally collects and remits the tourism tax.","inLanguage":"en-US"},"inLanguage":"en-US"}]}},"featured_image_url":"https:\/\/iqiglobal-web-revamp.s3.ap-southeast-1.amazonaws.com\/wp\/blog\/wp-content\/uploads\/2026\/08\/27180852\/image-5.png","_links":{"self":[{"href":"https:\/\/iqiglobal.com\/blog\/wp-json\/wp\/v2\/posts\/106695","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/iqiglobal.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/iqiglobal.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/iqiglobal.com\/blog\/wp-json\/wp\/v2\/users\/39"}],"replies":[{"embeddable":true,"href":"https:\/\/iqiglobal.com\/blog\/wp-json\/wp\/v2\/comments?post=106695"}],"version-history":[{"count":14,"href":"https:\/\/iqiglobal.com\/blog\/wp-json\/wp\/v2\/posts\/106695\/revisions"}],"predecessor-version":[{"id":134748,"href":"https:\/\/iqiglobal.com\/blog\/wp-json\/wp\/v2\/posts\/106695\/revisions\/134748"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/iqiglobal.com\/blog\/wp-json\/wp\/v2\/media\/133039"}],"wp:attachment":[{"href":"https:\/\/iqiglobal.com\/blog\/wp-json\/wp\/v2\/media?parent=106695"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/iqiglobal.com\/blog\/wp-json\/wp\/v2\/categories?post=106695"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/iqiglobal.com\/blog\/wp-json\/wp\/v2\/tags?post=106695"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}