Public Ruling On Income From Rent

DIRECTOR GENERAL'S PUBLIC RULING 1/2004

Public Ruling 1/2004 is issued for the purpose of providing guidance for the public and officers of the Inland Revenue Board. It sets out the interpretation of the Director General of Inland Revenue in respect of the particular tax law, and the policy and procedure that are to be applied.

A Public Ruling may be withdrawn, either wholly or in part, by notice of withdrawal or by publication of a new ruling which is inconsistent with it.

Director General of Inland Revenue, Malaysia

This Ruling considers:

1. the treatment of rent as a non-business source of income under section 4(d) of the Income Tax Act 1967;

2. the situations or circumstances where rent or income from the letting of property can be treated as business income of a person under section 4(a) of the Act;

3. how all properties of a person are to be grouped in several categories in computing the statutory income under section 4(d) of the Act;

4. when the business of letting of property can be said to have commenced;

5. whether capital allowances can be claimed on capital expenditure and when the replacement cost can be deducted as allowable deduction.

For more detail please refer to: PR 1/2004

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