Allowable Expenses for Rental Income in Malaysia

So, if you are filing your tax in Malaysia under individual (Borang BE) and you happen to have rental income, here are the allowable expenses that you can deduct from your rental income:

1. Interest portion of your loan
2. Cukai taksiran/pintu (i.e. MBPJ, DBKL)
3. Property tax
4. Insurance
5. Maintenance fee
6. Stamping fee for agreements.
7. Agent fee (doesn't apply to first time you rent out your property)
8. Other cost/fee directly related to getting the rental income.

What you can't deduct:

1. Administration fee.
2. Improvement cost (i.e. paint, furniture, water heater, air-con, etc).
3. Renovation cost.
4. Any cost/fee that is not related to getting the rental income.

However, if this is rental income from your business and qualified to become a business income (i.e. at least 4 residential properties, etc) the first 3 of the above are allowable expenses. Other cost/fee connected to any aspect of your rental business are also allowed. Consult your tax consultant (I am not!) for more information. Hope this helps someone!