cukai taksiran calculation – property How to Calcalute

What is Assessment Rates (Cukai Pintu or Cukai Taksiran or Kadaran?)

Assessment Rates (Cukai Pintu or Cukai Taksiran or kadaran or revaluation list termed by local government itself) is chargeable by the Majlis/Local Government onto any holding under their jurisdiction as per the National Land Code 1966 and Local Government Act 1976 (Act 171).

Very Recent (2021), Majlis Bandaran Seremban imposed the new rate of the assessment rate, and up-coming is Dewan Bandaraya Kuala Lumpur is doing it. Certain Local Governments at Pahang state have also implemented a new rate whereby the most of the owners found the rate is charged at a very high rate. (was told to the highest and best use of the holding if there is no syarat nyata mentioned in the title-you can appeal to reduce it). Not to confuse the public, this is a different rate/payable charge from Quit Rent (per annum) which imposes on your title by Land Office. (Quit Rent is at your title)

Once the new rate is implemented, surely the rate will be increased and all the landowners will be jumped high and low due to the new rate.

Legally, the local government or authorities are empowered to impose a new rate (revaluation list) within 5 years, however many of them are not implemented due to manpower shortage or other reasons. Was told some were more than 20 years have not updated their revaluation list

cukai-taksiran-calculation (Sample : assessment receipt, Majlis Bandaran Seremban, shared by a landowner to me who asks advice can she appeal after her neighbour told her, if tak boleh bayar, balik kampung la)


What is the purpose of  Assessment What is Assessment Rates (Cukai Pintu or Cukai Taksiran or Kadaran?)

This is because the taxes collected will be used for the maintenance cost of the majlis/local government, such as the cost of transporting waste, cleaning gutters,  cutting trees down (recently happens in front of my house, 5 big trees (about 14 years) been cutted down..rumour : 1 big tree costs a monthly income of a bank branch manager plus their incentive ..sadly…we supposedly to plant more trees..but instead cutting down trees with high cost), maintenance of landscape, street lighting, maintenance of signal lights, and so on.

How Assessment Rates What is Assessment Rates (Cukai Pintu or Cukai Taksiran or Kadaran?) is calculated?

The annual value of the Assessment Rates (Cukai Pintu or Cukai Taksiran) is calculated on 2 bases based on the market valuation of the property throughout Peninsular Malaysia.
1) “estimated gross annual rent” gained by the landlord/property owner,
2) “estimated gross market value” gained by the landlord/property owner

Annual Value = Estimated gross rent per month x 12 months.

What is gross rent? Rent that you as an owner might be collected.

(The percentage is set by the state)

Hence,  Assessment = Percentage of Annual Value x Rate

For Example:

Annual rent = RM2,880

Percentage rate = 13%

Assessment = RM374.40 per year or RM187.20 for half a year.

This same principle applies to Market Value. We are told that the principal by market value (Johor is implementing this principle and a few other majlis within peninsular malaysia) is much easier to calculate as compared to rental. Due to lack of declaration of rental.

Sample of the rate imposed on different type of properties by mbpp

http://www.mbpp.gov.my/en/citizens/services/property-assessment

What if your property is not manned or is not generating any income?

Assessment Rates (Cukai Pintu or Cukai Taksiran or Kadaran) will still be imposed regardless the property, building or house is empty (not occupied). However, the owner can apply for remission claims over the period of vacancy by giving written notice (need to prove like been advertised on newspapers few times and still not taker) to the local or municipal authorities.

What if – if you are not happy for the new rate? When the owner received the new rate, surely he/she/it will jump high and low. Can the landowner appeal the new rate to lower?

Logically thinking

1) Can, but is a bit difficult for standard houses within a housing scheme

2) For individually designed special properties, the possibilities are there to appeal. (don’t quote me, just an opinion and logical thinking)

For stratified properties, generally, is payable to /via management (JMB or MC) (onwards payment to local government) or parcel rent which starts getting momentum to be implemented on those stratified apartments and condominiums.

This new parcel rent is now a separate charge billed directly to owners.

This new tax law needs to be gazetted before implementation. In June 2018, Selangor implements a new land tax that was started in Selangor to replace the quit rent, called parcel rent.

In the current system (pre), any owner who wants to sell or transfer the ownership of a parcel would run into trouble if the Land Office records show that other parcel owners in the property have not paid their quit rent. This change was created with the intention to ease the sale and transfer of ownership of strata properties.

What would be the outcome if it is failed to pay for the Assessment Rates (Cukai Pintu or Cukai Taksiran)?

If it is still failed to pay for the Assessment Rates (Cukai Pintu) after receiving the Notice (Form E), an arrest warrant will be issued to the owner and the cost of warrants of 10% on the amount of tax arrears will be charged. The warrant authorizes the Municipal Council officials empowered to carry out the following actions:

a) Depriving or confiscate loose items that are available in the building. This been shown on TV a few months ago. Google it the keyword,  majlis perbandaran kajang if not mistaken.
b) Auction off the building or household items or land by the registrant auctioneer appointed by the municipal council.

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