What Expenses Can Be Deducted From Rental Income In Malaysia?
Updated: May 16, 2021

So, what are these deductible expenses for rental income? According to LHDN, they include:
✅Assessment tax
✅Quit rent
✅Interest on home loan
✅Fire insurance premium
✅Expenses incurred on rent collection
✅Expenses incurred on rent renewal
✅Expenses on repairs and property maintenance
✅Expenses on replacement costs of furnishings
✅Property service charges, maintenance fees, sinking fund, and Indah Water bills
✅Renewal property agent fees/commission
✅Expenses on pest control
✅income tax, rental income exemption malaysia 2020
Rental income expenses which are not deductible are initial expenses. These include:
❎Costs to advertise the property
❎Legal costs in preparing the rental agreement
❎Stamp duty
❎Property agent commission to obtain the first tenant
❎Expenses on renovation and improvement to get higher rental or to be more attractive to potential tenant