Malaysia Tax Agency Posts Guidance on Taxation of Building Management Fees, Charges

The Malaysian Inland Revenue Board July 18 posted online Guideline No. LHDN.AG.600-1/7/3, explaining the tax treatment of fees and charges collected by housing developers and management bodies for the maintenance and management of buildings and common areas. The guidance concerns structures such as condominiums, townhomes, and retail space. Topics covered include: 1) definitions of terms used in the guidance; 2) the taxable or non-taxable treatment of various charges collected by developers and managing bodies; 3) the non-taxable treatment of management fund income under the principle of mutuality in the Income Tax Act, and the disregard under the act of capital ...