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jpph.gov.my/v3/en/jpph-business/valuation-and-property-services-activity/rating
BASIS OF TAX
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
Annual Value means the estimated gross annual rent 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.
IMPROVED VALUE
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.
TYPE OF RATES
Under the Local Government Act 1976, Local Authorities may impose the following rates:
RATE OF TAX
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 :
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Consolidated Rate or Annual Rate 35% 5%
Drainage Rate 5% 1%
The Local Government Act also provides for the use of different rates based on the
location or use of the property.
The responsibility for the determination of Annual Value/ Improved Value, percentage
rate and the collection of rates lies with the respective Local Authority.
REVALUATION
Revaluation of all holdings is done once every five (5) years or within such extended
period as determined by the State Authority.
Upon request by the Local Authority, JPPH provides the following services:
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