1. Is Rental Payment Tax-Deductible for the Company?

Yes – if the house is used for business purposes, such as:
• Staff accommodation
• Office space
• Director accommodation (only if justifiable for business)

Then, the rent is a deductible expense under Section 33(1) of the Income Tax Act 1967.

However, it must be reasonable and not excessive or personal in nature, or LHDN may disallow it.
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2. When Do You Pay Tax on It?
There are no direct taxes on paying rent, but you must:
• Declare the rent as an expense when preparing your company’s annual tax filing (Form C), which is due 7 months after your financial year end.
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3. Does the Company Need to Withhold Tax on Rent?
This applies only if the landlord is a non-resident (foreigner).
Landlord is Malaysian - Not required
Landlord is foreign/non-resident - Required 10% (under Section 109F)
You must remit 10% of the gross rent to LHDN within one month of paying rent to a non-resident landlord.
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4. Is SST (Sales & Service Tax) Charged on Rent?
• Residential rent = Not subject to SST
• Commercial property rent = May be subject to SST (6%), only if landlord is SST-registered (threshold: RM500,000 per year)
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5. Do You Need to Pay RPGT or Property Tax?
No. Those are landlord obligations. As the tenant, you do not pay:
• Real Property Gains Tax (RPGT)
• Quit rent / assessment
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Example Summary:
Let’s say:
• You rent a house at RM5,000/month for your Sdn Bhd director
• The landlord is Malaysian
• Your company uses the house for business-related purposes 

Then:
• No withholding tax needed
• No SST
• RM60,000/year rent is a deductible business expense
• You report this as an expense in your Form C, due 7 months after year-end

/ - 10%109F

10% LHDN
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4 SST
• SST
• SST6%
 SST RM500,000
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5 RPGT

• RPGT
• quit rent/ assessment
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• RM5,000
•
•


•
• SST
• RM60,000
• Form C 7