Assessment & Taxation FAQ

FAQ

Assessment & Taxation

Q :

What is assessment tax?

A :

Assessment tax or gate tax is enforced in accordance with the provisions of the Local Government Act 1976 (Act 171) under Section 127. It is a tax imposed on real estate located within the MBSA area:
A) Residence
Terraced houses, semi-detached houses, detached houses, town houses, flats, apartments, condominiums, shops and so on.
B) Business
Shops, stores/offices, shopping malls, cinemas, offices, hotels, gas stations, recreation centers
C) Industrial

Terraced plants, twin plants and single plants.
D) Vacant land - Agricultural land, development land.

2.	Q :	Is vacant land also subject to assessment tax?
	A :	Yes, vacant land that has a title grant is subject to assessment tax in accordance with the Provisions of Section 2, Act above.

3.	Q :	Why is assessment tax enforced?
	A :	Assessment tax is enforced to finance: A) Area cleaning services such as garbage collection, street cleaning, ditches and grass cutting. B) Construction and maintenance of infrastructure such as roads, ditches, drains and urban beautification. C) Provision and maintenance of street lights. D) Construction and maintenance of public facilities such as public halls, public toilets, markets, playgrounds, recreational areas and so on.

4.	Q :	Bilakah ianya patut dibayar?
	A :	Cukai taksiran perlu dijelaskan dua kali setahun A) Setengah tahun pertama - 1 Januari-28 Februari B) Setengah tahun kedua - 1 Julai-31 Ogos

5.	Q :	Does the payment of assessment tax arrears in installments incur any interest?
	A :	Yes, installment interest of 4% will be applied to applications that have been approved 4 times (4x) above and the relevant interest must be paid.

6.	Q :	Why does the owner always not receive the bill? Only receive after payment period ends.
	A :	Bills will be posted to the address provided by the developer. If the owner has moved from the specified address, the owner must inform MBSA of the latest address to be updated in MBSA's records. When it is received late, it is possible that there is a postal problem or during the payment period, there are too many bills so maybe the bill has been wrongly sent to another address, for example if the street number is the same.

7.	Q :	Can MBSA give tax reduction to property owners?
	A :	MBSA will help taxpayers who have problems with tax arrears by providing late payment charge relief and remission. This is guided by the application and supporting documents.

8.	Q :	Can assessment tax be paid in installments?
	A :	Yes, installments are allowed for arrears exceeding RM 500.00 and above. i) Installments less than RM 1,000.00 are allowed 3x installments ii) Arrears exceeding RM 1,000.00 and above, installments allowed a maximum of 5 times with an interest rate of 4%.

9.	Q :	Can user check the amount of assessment tax payment through the website?
	A :	Yes, if you are registered in the iCukai Online Service.

10.	Q :	When is the assessment tax payment deadline for each term?
	A :	For JANUARY-JUNE, the payment deadline is FEBRUARY 28 while for JULY-DECEMBER, the deadline is AUGUST 31 every year.

11.	Q :	What if I don't get an assessment tax bill?
	A :	You can print the Assessment Tax Bill through the Online Service by registering at iCukai. You can also go to the main counter at Level G (Elevator A), Wisma MBSA or contact the Revenue Department. You should bring a copy of the previous assessment tax bill or the account number of the assessment tax bill to get a printout of the latest bill. If you do not remember the account number of the bill, please bring along the details of the property so that a check can be made.

12.	Q :	How do I change the mailing address for my bill?
	A :	Fill in and complete the Exchange of Correspondence Address Form which can be found at the Valuation and Property Management Department or visit www.mbsa.gov.my to obtain the Exchange of Correspondence Address Form.