1. Can Your Sdn Bhd Rent a House?  

Yes, a Sdn Bhd company can rent a residential property for:
• Business use (e.g. staff accommodation, directors’ stay for business purposes)
• Operations (e.g. a home office)
The rental agreement should be in the company’s name.
________________________________________
2. Tax Implications for the Landlord (Not Your Company)
The landlord (the house owner) will:
• Be taxed under personal income tax on the rental income
• Pay tax when filing their annual personal tax return (Form BE/B) by 30 April (for individuals)
________________________________________
3. Tax Implications for Your Sdn Bhd Company
a. Is rental payment tax-deductible for the company?
Yes, if the rented house is used wholly and exclusively for business purposes, then:
• Monthly rent is deductible from your company’s gross income under Section 33(1) of the Income Tax Act 1967

Example:
If you pay RM3,000/month (RM36,000/year) for staff housing → RM36,000 is tax-deductible

But if it’s used for private use or not justified for business, it won’t be deductible.
________________________________________
4. Is There Any Withholding Tax on House Rent?
• No, there is no withholding tax for rent paid to a Malaysian resident landlord
• Yes, if the landlord is a non-resident, you must withhold 10% withholding tax on rental paid
________________________________________
5. When Does Your Sdn Bhd "Pay Tax" for Rental?
Your company doesn’t pay tax on rent paid, but it:
• Claims rent as a deductible expense in the company tax filing (Form C)
• Pays corporate income tax (generally 15%–24%) on the net profit AFTER expenses
So, rent helps reduce your tax burden.
________________________________________
6. Do You Need to Pay SST on Rent?
• Residential rent is not subject to SST
• If you rent commercial property from a landlord who is SST-registered → SST might apply (6%)
________________________________________
7. Important Compliance Notes:
• Keep a proper tenancy agreement under the company name
• Record monthly rent in your company’s accounts
• Don’t use the rented house purely for personal/director’s use unless properly declared as a benefit-in-kind (BIK)
________________________________________
Summary:
Rent paid by Sdn Bhd - Tax-deductible if for business use
Tax paid by landlord (owner) - Personal income tax on rental income
Withholding tax - 10% only if landlord is non-resident
SST - No SST on residential rent
When tax is paid - Company pays tax on net profit (Form C filing)

1. Sdn Bhd

Sdn Bhd
•
•

________________________________________
2.

•
• BE/B
• 4 30
________________________________________
3. Sdn Bhd
a.

• 1967 33(1)


RM3,000 RM36,000
→ RM36,000


________________________________________
4. Withholding Tax
• 
•  10% LHDN
________________________________________
5. “”

• Form C
• 15%-24%

________________________________________
6. SST
•  SST
•  SST 6% SST
________________________________________
7.
•
•
• BIK

Sdn Bhd -
-
- 10%
SST - SST SST
-