What is Cukai Tanah (Quit Rent)?

Have you paid your cukai tanah this year? Maybe you're not even sure what cukai tanah is? In that case, this is the article for you!

Is it tax season still? It was back in April, where we shared with you our tips on income tax along with our suggestion on why not to spend your tax refunds. Now that it's May, we feel it's a good time to talk about that other bit of tax we get hit with every year, the quit rent or cukai tanah.

What is Cukai Tanah?

It's all in the name. Cukai tanah literally translates to 'land tax', which is a tax levied on the land that's in use upon whoever is using it. Back in feudal times, all land belonged to the monarch (king, sultan, or whoever was at the throne) of those lands. Those not of royalty have to pay taxes on the land that the royal Highness has graciously allowed them to use.

This land tax funds the kingdom (or state) so that it can provide for its people. In countries where the monarchy is no longer in power, this land tax does not exist anymore (they're replaced by other forms of taxation). Since Malaysia still has all its kings and the land tax is a healthy source of income for the states, we citizens still have to pay it.

How Does the Tax Work?

Nowadays, the National Land Code makes it compulsory for all landowners to pay cukai tanah (now also known as quit rent) once a year to the relevant land office of their State Government. It's imposed on owners of both freehold and leasehold land. If your property is rented, the tax is often included into the cost of your rent, so you don't have to worry about it.

But if you do own land, you're required by law to pay up every year between 1st January and 31st May, even if you don't get any notifications or letter requesting you to do so. Failure to pay your cukai tanah can result in your land being reposessed.

Whoa. How Do I Pay Cukai Tanah Then?

The amount you need to pay varies from state to state and it even changes depending on the class of land you own. You can visit the official website of the Ministry of Natural Resources & Environment to check the rates and different methods of payment you can use for wherever state you own the land in. You'll have to pay per square footage of the land you own and it typically doesn't cost you more than RM200 per year.

We hope you have a better understanding of cukai tanah now and are ready to pay up (if you have to) by the end of the month! Speaking of owning land, why not check out our home loan comparison tool if you're in the market for some new properties? Have any more questions about cukai tanah? Feel free to ask us in the comments section down below!

0 comments

Agree or disagree with this post? Questions? You also have your word!

  • DMA

    Just curious as to why it's called "Quit Rent" and not Land Tax?

    Reply
    • RinggitPlus

      Hi DMA,

      Good question. Back in feudal times, to pay rent, you would give a portion of what you worked on the land to the king (vegetables, milk, wool, etc).

      But if you don't want to pay this “rent”, you pay in coin instead. This pay was called “quit rent”.

      Thanks

      Reply
    • SAMY

      can i know hows quit rent calculated by land office? do they have any formula in determine each unit of property?

      Reply
    • Cecilia Lee

      Is quit rent deductable from gross income?

      Reply
    • Azie

      Hi, Just curious about this. I just don't remember did i ever paid this quit rent few years back when i bought this terrace house. But it triggers me this year. So since I'm buying the house thru a bank (well i guess most of the properties were bought this way) by housing loan, so I need to pay the quit rent to the bank as they are the one who's still owning the land? Because i received the mail from the bank requesting me to pay them the amount as it has been debited to the account.

      Reply
      • RinggitPlus

        Hi Azie,

        You usually have to pay to the appropriate state bodies the land is under. Here's an example of how to pay it through MayBank https://goo.gl/lRGvaq
        If you're unclear over what you're actually paying for when the bank asks you to debit the amount, try to request for a receipt for the payment they said they were making. If everything tallies then you're good to go.
        Hope this helps

        Reply
      • Shu Qi

        Hi. Is it applicable to apartments/condominiums too, either with or without strata title?

        Reply
        • RinggitPlus

          Hi Shu Qi,

          As long as you get the bill in your mail, you should pay it. It might depend on which state you live in, of course.
          If you're not sure, try contacting the appropriate governing body for your state. Here is Selangor's https://hasil.selangor.gov.my/ContactUs.aspx

          Reply
        • Marc Philip

          Hi Ringgit Plus,

          I'm in the midst of planning to purchase a land in Klang. I'm trying my best to find out the difference between the different rates applicable for agriculture land and industrial land. is there sort of a tariff computation for this?

          Reply
          • RinggitPlus

            Hi Marc,

            This question is a bit too involved for us to answer, as it relates to property prices and regulation.
            Perhaps a source more related to property can help you better?
            Thanks for your question!

            Reply
          • Jacob

            Hello,
            I have a question, is annual property tax equal to quit rent? thank you

            Reply
            • RinggitPlus

              Hi Jacob,

              It's similar, and is paid annually. So it is a form of yearly property tax, yes. Whether or not it's equivalent to another system of annual property tax, we can't be sure.
              Thanks for your question!

              Reply
            • Louise Chang

              Hi, thanks for the great article! May I check if I can pay quit rent via JOMPAY biller code 55228? I used to pay via johor.gov.my using credit card. Thanks so much in advance. Louise

              Reply
              • RinggitPlus

                Hi Louise,

                Cukai tanah is handled differently depending on which Majlis is handling things. It's best you contact the one that corresponds to your region to find out.
                From our quick research, it looks like in most cases, this should be possible, but the biller code will be different depending on where you are.

                Hope this helps and thanks for your question!

                Reply
              • Anne

                Hello, may i please find out, if a landed property has multiple joint owners on the S&P, do all owners pay a portion of the quit rent? or only 1 owner will receive the tax bill for that 1 property? What is the right "document" or "law" or "regulation" i can refer to if i want to get the answers directly from the source? thanks!

                Reply
                • RinggitPlus

                  Hi Anne,

                  The answer to your question might be different depending on which state you live. As we've mentioned in the article, you can check out the official website of the Ministry of Natural Resources & Environment to find out more from an official source: https://www.jkptg.gov.my/en/content/land-tax-payments-online

                  Hope this helps and thanks for your question!

                  Reply
                • Lim Kim Mun

                  Hi,
                  I own shares with my brother on a property but we do not speak with each other due to family conflict. The property is empty for decades. If i do not want to pay cukai how long will the government repossess it? I dont mind for the government to take it away as i do not want hassle from my brother as he will not buy my shares or sell his share.

                  Reply
                  • RinggitPlus

                    Hey, Lim.

                    If you decide not to pay the Quit Rent, the relevant authority will issue a notice (Borang 6A) to remind you to pay the tax (The current tax plus the outstanding amount you have not pay). However, if you still do not pay after three months from the date the authority issued Borang 6A, then the authority will seize the land. Here is the link for your reference https://hasil.selangor.gov.my/soalanlazim.aspx.

                    That said, we encourage you to contact the relevant land office of your state https://hasil.selangor.gov.my/DirektorPejabatHasil.aspx for more information.

                    Thank you for the question and we hope the answer helps.

                    Reply
                  • albert

                    The pejabat tanah does not send out statement to the house owners requesting them to pay cukai tanah. Is it fair if they still charge you late payment ( denda lewat ) whether you receive the statement or not ?

                    Reply
                    • RinggitPlus

                      Hi, albert

                      Yes, you still have to pay the penalty charges as it is the responsibility of every landowner to inquiry and pay the land tax. We also suggest contacting the respective land and mine offices for more information and advice.

                      Thanks for the question and we hope this help.

                      Reply
                    • Muruga

                      If I were to buy a property, do I need to change the name on the Quit Rent or will it be changed automatically when the property is registered under my name?

                      Reply
                      • RinggitPlus

                        Hi, Muruga

                        This part depends on the area where your property is registered. If your property is in KL, then you need to head to DBKL or its website to fill up both Form I and Form J. Besides that, you need to provide a copy of the Sales & Purchase Agreement of the property to DBKL http://www.dbkl.gov.my/index.php?option=com_content&view=article&id=281&Itemid=686&lang=en.

                        Again, it is in your best interest to check your respective state authority or your state's land and mine department.

                        Thanks for the question and we hope this helps.

                        Reply