If your Sdn Bhd (Sendirian Berhad) rents a house in Malaysia, here are the key tax implications depending on who is the landlord (the house owner) 濡傛灉鎮ㄧ殑绉佷汉鏈夐檺鍏徃 锛圫endirian Berhad锛夊湪 椹潵瑗夸簹绉熸埧锛屼互涓嬫槸涓昏绋庡姟 褰卞搷锛
If your Sdn Bhd (Sendirian Berhad) rents a house in Malaysia, here are the key tax implications depending on who is the landlord (the house owner) 濡傛灉鎮ㄧ殑绉佷汉鏈夐檺鍏徃 锛圫endirian Berhad锛夊湪 椹潵瑗夸簹绉熸埧锛屼互涓嬫槸涓昏绋庡姟 褰卞搷锛
1. Withholding Tax (WHT) – Only if landlord is a non-resident (foreign)
If your company rents from a foreign landlord (non-Malaysian tax resident), your company must deduct 10% withholding tax on the gross rent paid and remit it to LHDN (Lembaga Hasil Dalam Negeri).
Example:
Monthly rent: RM 5,000
WHT to LHDN: RM 500/month
You pay RM 4,500 to the landlord, RM 500 to LHDN.
WHT must be paid within 1 month from the date of payment or crediting the rent.
✅ 2. If landlord is a Malaysian resident
No withholding tax is required.
Just pay the rent to the landlord.
✅ 3. Can your company claim the rent as an expense?
Yes, if the house is used wholly and exclusively for business purposes (e.g. staff accommodation, expat housing, etc.).
You must:
Keep the tenancy agreement in the company’s name.
Ensure it’s clearly for business use, not private/personal use.
Maintain supporting documents like rental receipts.
✅ 4. When does your company pay corporate income tax on this?
Rental expenses reduce your company’s taxable profit.
Corporate tax (generally 15% to 24%) is paid annually based on your company's year of assessment (YA):
Estimate of Tax Payable: Must be submitted (via CP204) within 3 months of financial year start.
Final Tax Payment: Upon filing Form C after year-end.
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