The Income Tax (Exemption) (No. 2) Order 2019 was gazette on 27 February 2019 and is effective for the year of assessment (YA) 2018. It exempts a landlord who rents out his residential from the payment of income tax in respect of 50% of his statutory income derived from the rental of residential property for YA 2018.
1. The landlord must be a citizen who resides in Malaysia and he must also be the registered proprietor of his residential property.
2. The monthly rental amount received should not exceed RM2,000 per month for each residential property.
3. The tenancy agreement between the landlord and the tenant has to be executed and stamped for coming into effect on or after 1 January 2018.
4. The resident property is rented out for any period from 1 January 2018 until 31 December 2018.