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Use a 'Sdn Bhd' to collect rental

Received a call from stranger today at 2:20pm while waiting for my lunch to be served.


A long chat, 34 miniutes, mostly listen as caller keep talking and my food served and turn from hot to not so hot already. My first advice to her, don't use Sdn Bhd to collect rental for properties currently owned by few individuals (shared) because

  1. Expensive compliance compared to currently, no need to comply to Companies Act 2016;

  2. More paperwork


Of course, when costs are paid, it also come with some benefits or advantage

  1. Tax with Sdn Bhd maximum at 24% but for individual may easily above 24% when taxable income above RM100k per year.

  2. Sdn Bhd offer an option for 'Asset Distribution' before and/or after one pass away;

  3. May able to rent to certain tenant who want to deal with corporate, than landlord with multiple name in the land title (some unusual situation)

One interesting point she mentioned, one guru in KL shared to her in a seminar, rental income is 'grey area' as one may avoid paying income tax, I certainly disagree on this, there may be many 'grey' area but 'RENTAL' is certainly a taxable source of income regardless if you are individual or body corporate (i.e. Sdn Bhd).


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