Rating

Rates imposed by Local Authorities are based on the.....................................

• Annual Value of the property with the exception of the State of Johor which adopts Improved Value.

• Annual Value of the property with the exception of the State of Johor & Melaka which adopts Improved Value.

• Annual Value of the property with the exception of the State of Melaka which adopts Improved Value.

• Annual Value of the property with the exception of the State of Selangor which adopts Improved Value.

Annual Value means the ................................................................ at which the holding might reasonably be expected to let from year to year with the landlord paying the expenses of repair, insurance, maintenance or upkeep and all public rates and taxes.

• estimated gross rent

• estimated capital value

• estimated gross annual rent

• estimated net rent

Improved Value means the price that an owner willing and not obliged to sell might reasonably expect to obtain from a willing purchaser with whom he was bargaining for the .....................................................

• sale and purchase of the holding.

• sale of the holding.

• purchase of the holding.

Rates charged are based on a certain percentage of the Annual Value or the Improved Value. This percentage may be varied from year to year by the Local Authority with the State Authority’s approval and is subject to the following maximum percentage rates :

• Annual Value

  Consolidated Rate or Annual Rate

  35%

• Annual Value

  Drainage Rate

  5%

• Improved Value

  Consolidated Rate or Annual Rate

  5%

• Improved Value

  Drainage Rate

  5%

Revaluation of all holdings is done once every ................................. or within such extended period as determined by the State Authority.

• five years

• six years

• seven years

• three years

In Malaysia, ............................ or also known as assessment tax is collected by local authorities to finance the construction and maintenance of public infrastructure.

.................................... is an annual tax levied on private properties while ............................................ is a tax on strata properties, both of which must be paid to the state authorities.

• "cukai tanah"

  "cukai petak"

  "cukai pintu"

• "cukai tanah"

  "cukai pintu"

  "cukai petak"

• "cukai pintu"

  "cukai tanah"

  "cukai petak"

• "cukai petak"

  "cukai pintu"

  "cukai tanah"

What are property assessment rates and who has to pay for it?

• • Erecting and maintaining the street lamps

• Cleaning and maintaining the public parks

• Collecting municipal rubbish

• Construction and maintenance of public infrastructure

How is Assessment Rate calculated in Malaysia?

• Assessment rates are determined based on the annual rental value (ARV) of the property, which is an estimate of the property’s rental income potential. The ARV is multiplied by the assessment rate, which varies among local authorities, to calculate the assessment amount.

• Tenant receive an assessment notice indicating the amount due and the payment deadline. Assessment payments can be made through various channels, including online banking, payment counters, and designated collection centers.

• Similar to quit rent, non-payment of assessment may lead to penalties, interest charges, and legal actions by the local authorities. Timely payment is crucial to avoid complications and maintain a good standing with the local government.

Which of the assessment calculation examples is correct?

• Suppose you own a residential property in Kuala Lumpur with an Annual Rental Value (ARV) of RM30,000. The assessment rate set by the local council is 5%.

  Calculation: Assessment Amount = ARV x Assessment Rate
  Assessment Amount = RM30,000 x 5% Assessment Amount = RM1,500

• Suppose you own a residential property in Kuala Lumpur with an Annual Rental Value (ARV) of RM30,000. The assessment rate set by the local council is 5%.

  Calculation: Assessment Amount = ARV x Assessment Rate
  Assessment Amount = RM30,000 x 5% Assessment Amount = RM3,500

• Suppose you own a residential property in Kuala Lumpur with an Annual Rental Value (ARV) of RM30,000. The assessment rate set by the local council is 5%.

  Calculation: Assessment Amount = ARV x Assessment Rate
  Assessment Amount = RM30,000 x 5% Assessment Amount = RM2,500

Which of the assessment calculation examples is correct?

• ESTIMATED ANNUAL RENTAL VALUE (ESTIMATED MONTHLY RENTAL VALUE X 12) x PERCENTAGE RATE = ASSESSMENT RATES

  (RM 2,500 x 12) x 4% = ASSESSMENT RATES

  RM 30,000 x 4% = RM 4,200

• ESTIMATED ANNUAL RENTAL VALUE (ESTIMATED MONTHLY RENTAL VALUE X 12) x PERCENTAGE RATE = ASSESSMENT RATES

  (RM 2,500 x 12) x 4% = ASSESSMENT RATES

  RM 30,000 x 4% = RM 1,200

• ESTIMATED ANNUAL RENTAL VALUE (ESTIMATED MONTHLY RENTAL VALUE X 12) x PERCENTAGE RATE = ASSESSMENT RATES

  (RM 2,500 x 12) x 4% = ASSESSMENT RATES

  RM 30,000 x 4% = RM 2,200