发表于 27-3-2010 03:11 PM
回复 34# shenhai |
TAX DEDUCTION ON HOUSING LOAN INTEREST A2.1
A2 INCOME TAX — CHANGES
Interest on a housing loan paid by an individual taxpayer is allowed as a deduction for the
purpose of income tax if the taxpayer receives rental income from the house. For houses which
do not generate any income including owner occupied houses, interest on such housing loans
are not allowed as deductions.
It is proposed that tax deduction up to RM10,000 per year be given on housing loan interest for a
house purchased from a developer or third party subject to the following conditions:
i. the taxpayer is a Malaysian citizen and a resident;
ii. limited to one residential property including a house, flat, apartment or condominium;
iii. the sale and purchase agreement is executed between 10 March 2009 and 31 December
iv. the individual has not derived any income in respect of that residential property.
The tax deduction is given for 3 consecutive years from the first year the housing loan interest is
In the case of joint ownership of the same property, the deduction eligible for each individual is
apportioned between these individuals based on the interest expended by that individual as a
proportion of the total interest expended by all individuals in accordance with the following
A x B
where A is the total amount of interest deduction allowed for that relevant year (maximum
B is the total interest expended in the basis year for that relevant year by that
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TAX EXEMPTION ON COMPENSATION RECEIVED FOR LOSS OF
C is the total interest expended in the basis year for that relevant year by all such
Loan Interest Elly Hilman Total
Interest paid RM20,000 Year of RM40,000 RM60,000
10,000 x 20,000
10,000 x 40,000
In the case of husband and wife, the husband is allowed to claim the interest expenses incurred
by the wife (and vice versa):
i. if the wife elects that her total income be aggregated with that of the husband’s; or
ii. if the wife has no total income.
Section 46B of the Income Tax Act 1967
Year of assessment 2009
Likely Tax Effects and Implications
The change is only applicable to houses purchased after 10 March 2009 and not to houses
purchased before that date. Houses under construction should also benefit from this deduction.
A similar deduction was allowed previously for the years of assessment 2003, 2004 and 2005 up
to a maximum of RM5,000, RM3,000 and RM2,000 respectively during the Stimulus Package
announced on 21 May 2003.