Malaysian Taxation Assignment: Case Study on Rental & Interest Income for YA2024–2025

Q1:

Shanggari, a Malaysian resident, has a relative named Neha in Abu Dhabi. Neha asked for a loan from Shanggari to start out her small catering business in Abu Dhabi. She needs to renovate the kitchen and acquire some industrial grade kitchen equipment. Shanggari gave her RM100,000 loan with a flat interest of RM20,000. The first installment of RM40,000 (RM6667 is interest portion) has been paid in the year 2024.The following statements are true in regards to the interest income.

a. The interest income can be assessable for tax in Malaysia since it is received in Malaysia from outside Malaysia.

b. The interest income is not assessable for tax in Malaysia since it is paid by a non-resident

c. The interest income received by Shanggari is not deemed derived from Malaysia

d. The interest income received by Shanggari is deemed derived from Malaysia

Q2:

Joyce, a Singapore resident, owns two apartments in Johor Bharu, Malaysia, She let them out to her Singaporean relatives and friends for short term rental. She would collect SGD 10 for advance booking and SGD40 for each day of stay. She hires a part time helper from Malaysia to clean the unit. The payment is transferred directly to her bank account in Singapore.The following statements are true in regards to the rental income:

a. The salary from the part time helper can be deductible from the rental income

b. The rental income is received in Singapore therefore it is not taxable in Malaysia

c. The rental income is deemed derived from Malaysia

d. The rental income is not deemed derived from Malaysia

Q5:

Bala has been renting out his two residential units of double-storey terraces in Johor Bharu since 2015. The residential houses are generally occupied by tenants (unless noted).The gross income and expenses incurred for the properties are as follows:

House at Taman Semenyih Impian

Rental income is RM1200 per month (The house was not occupied from 1.2.2024 to 31.1.2025 due to monitoring of hill slope activity following a nearby landslide)

Expenses:

Quit rent and assessment RM450 per year

Interest on loan of RM800 per year

House at Taman Semenyih Idaman

Rental income is RM1500 per month

Expenses:

Quit rent and assessment RM550 per year

Interest on loan of RM900 per year

Required:

A. Calculate Bala’s total income from rental for YA2024. Do not include RM or a comma in your answer

i)Rental income =

ii)Less Expense (total) =

iii)Total adjusted rental income =

B. On 25 December 2024, Bala migrated to Singapore. He still received the rental income in his new bank account in Singapore. He also concluded a new tenancy agreement at his residential house in Geylang, Singapore, on July 1, 2025, where a tenant from Singapore is renting for a short-term stay of 6 months.

i)The rental income Bala received in the YA 2025 is =

ii)The total rental income taxable in YA 2025 is =