Educational information only, not tax advice. Rules and figures change — confirm your situation with a qualified Malaysia tax professional before filing.
Kuala Lumpur, Malaysia · Malaysia · Short-term rental taxes
Short-Term Rental Taxes in Kuala Lumpur, Malaysia
Short term rental taxes in Kuala Lumpur: Airbnb collects the RM10-a-night tourism tax from foreign guests, you report the profit to LHDN, and 8% service tax applies only above RM500,000 a year.
The 30-Second Answer
- Short term rental taxes in Kuala Lumpur come in three layers: income tax on your profit (LHDN), the RM10 per room per night tourism tax on foreign guests, and 8% service tax that only large operators must charge.
- Since 1 January 2023 Airbnb collects and remits the tourism tax on its bookings; Malaysian citizens and permanent residents are exempt, and hosts must not add it again on Airbnb stays.
- Rental profit is taxed at resident rates of 0%–30% (non-residents a flat 30%). File Form BE by 30 April (e-filing to 15 May), or Form B by 30 June if your letting is a business source.
- Service tax registration starts at RM500,000 of annual revenue. KL has no stand-alone STR tax; the national short-term rental guideline is still awaiting Cabinet — your building's by-laws are the practical gatekeeper.
Deductions
What Kuala Lumpur Hosts Can Deduct
Non-business rental income is taxed after direct expenses incurred wholly and exclusively to earn it. Business-source hosts can also claim capital allowances on furniture and fittings.
Initial costs such as the first advertising or legal fees, and costs for periods when the unit is not available for rent, are not deductible. Keep receipts for every claim.
Filing Calendar
Key Dates & Filing Calendar
Malaysia taxes income on a calendar year of assessment. Year of assessment 2026 is filed in 2027.
A return filed inside the 15-day e-filing grace period avoids a late penalty, but LHDN treats anything after that as late from the original due date.
LHDN — Return Form Filing Programme 2026; Royal Malaysian Customs — Tourism Tax General Guide
Income Source
Rental Income or Business Income?
LHDN treats letting as either a non-business source (s.4(d)) or a business source (s.4(a)). The label decides your form, deadline and whether capital allowances apply.
Non-business rental (s.4(d))
Most single-unit condo hosts
- Applies when you do not actively provide comprehensive maintenance or support services.
- Deduct direct costs such as assessment tax, quit rent, loan interest, fire insurance and repairs.
- No capital allowances, but replacement furniture and air-conditioners are deductible.
- File Form BE by 30 April (e-filing to 15 May).
No revenue ceiling
Business source (s.4(a))
Operators providing full services
- Applies when you actively provide comprehensive maintenance or support services for the property.
- Claim capital allowances on furniture, fittings and equipment.
- File Form B by 30 June (e-filing to 15 July).
- Keep full business accounts; the same resident rates of 0%–30% apply.
No revenue ceiling
Depreciation
Depreciation and Capital Allowances in Kuala Lumpur
Malaysia has no accounting depreciation for tax. Relief comes through capital allowances — and only if your letting is a business source.
| Asset | Typical write-off period | Notes |
|---|---|---|
| The apartment itself | No allowance | Residential units do not attract capital allowances; the purchase price only matters for RPGT on a sale. |
| Furniture & appliances (non-business letting) | Replacement cost deductible | No capital allowances; the cost of replacing furniture or air-conditioners is deducted in the year incurred. |
| Furniture & fittings (business source) | 20% initial + 10% a year | Capital allowances under Schedule 3 of the Income Tax Act 1967; confirm rates with your tax agent. |
The non-business treatment follows LHDN Public Ruling 12/2018 on income from letting of real property.
There is no depreciation recapture as such. On a sale, real property gains tax applies: citizens and PRs pay 30% within three years, 20% in year four, 15% in year five and nil from year six; non-citizens pay 30% up to year five and 10% after.
Tourism & Service Tax
Kuala Lumpur's Lodging Taxes: Tourism Tax and SST
KL has no city occupancy tax. The lodging tax layer is federal: a flat tourism tax per room-night on foreign guests, plus service tax for large operators.
The bars compare the percentage rates KL hosts meet. The RM10-per-night tourism tax is a flat charge, so it sits in the table and note below.
RM10 per room per night tourism tax on foreign guests (collected by Airbnb) + 8% SST above RM500,000
Royal Malaysian Customs — MyTTx guides; MySST FAQ; Airbnb Help article 3362
| Booking type | Who collects & remits | What it means for your books |
|---|---|---|
| Airbnb booking | Airbnb collects the RM10 tourism tax from foreign guests (bookings from 1 Jan 2023) | Do not charge it again; record only your payout and fees |
| Booking.com / Agoda booking | Registered digital platforms charge tourism tax at booking | Check your extranet tax settings and statements |
| Direct booking | Registered operators (5+ rooms) charge tourism tax themselves | Collect proof of payment or MyKad/MyPR status |
Tourism tax is RM10 per room per night; Malaysian citizens and PRs are exempt. Operators with four or fewer rooms need not register for tourism tax, but a registered booking platform still charges it on every eligible stay.
Platforms
Airbnb Tax in Kuala Lumpur: What the Platforms Handle
Booking platforms take the tourism tax off your plate, but none of them files your income tax. Your LHDN return still covers every vacation rental payout.
| Platform | Reports your income | Collects the local lodging tax | Annual earnings summary |
|---|---|---|---|
| Airbnb | You self-declare income to LHDN | Yes — RM10/night tourism tax on foreign guests since 1 Jan 2023 | Transaction history export in the host dashboard |
| Booking.com / Agoda | You self-declare income to LHDN | Registered digital platforms charge tourism tax at booking — confirm in your extranet | Reservation and commission statements |
| Direct bookings (and Vrbo) | No platform report | Only if you are a registered operator with 5+ rooms | Keep your own booking ledger |
Listing on Several Platforms?
The RM500,000 service-tax threshold and your income tax are measured on total revenue across Airbnb, Booking.com, Agoda and direct stays. Keep one ledger per unit across every channel.
DAC7 Is EU-Only — What Applies in Malaysia
DAC7 does not apply in Malaysia. What links platforms to the tax system is the tourism tax regime: digital platform service providers register with Customs and account for the tax they collect every quarter.
Airbnb Help articles 3362 and 2912; Customs — Guide on Tourism Tax (DPSP), March 2025
Illustrative P&L: Kuala Lumpur Condo on Airbnb
Example: a KLCC-area one-bedroom earning RM60,000 a year, taxed as non-business rental on top of a salary in the 25% band. Illustrative only — not tax advice.
Record-Keeping
Stay Audit-Ready: What Kuala Lumpur Hosts Should Keep
KL hosts answer to LHDN for income tax, Customs for tourism and service tax, and their building's management for house rules.
| Keep | How long | Why |
|---|---|---|
| Register of guests | While operating | Required under the Registration of Guests Act 1965; fines up to RM2,000 |
| Booking statements and payout reports | 7 years | Supports the income on Form BE or Form B |
| Receipts for assessment tax, interest, insurance and repairs | 7 years | Backs every deduction LHDN may query |
| Tourism tax records (if registered) | 7 years | Customs' retention period for tourism tax transactions |
| JMB/MC approval and strata by-laws | While operating | Shows your building permits short stays |
Seven years is the retention period Customs sets for tourism tax records and a safe benchmark for income tax files too.
Estimator
Short-Term Rental Tax Estimator
Plug in your bookings and costs to see your likely taxable position.
Your Numbers
Total short-term-rental income, before costs.
Allowable running costs, mortgage interest, depreciation and platform fees.
Your top income-tax band, as a percentage.
Estimated tax owed
Income tax on your net rental profit at your marginal rate.
Illustrative estimate. A simplified model to orient you — it is not tax advice. Confirm your situation with a qualified local professional.
Sources & notes
Educational only. The national short-term rental guideline is a proposal, not law. Confirm with LHDN (hasil.gov.my), Royal Malaysian Customs and a licensed tax agent before filing.
- Airbnb Help — Tourism tax collection in Malaysia (article 3362) — RM10 per listing per night; Malaysians/PRs exempt; collected from 1 Jan 2023. airbnb.com/help/article/3362
- Airbnb Help — Responsible hosting in Malaysia (article 2912) — Income tax up to 30%; SST from RM500,000; Registration of Guests Act 1965. airbnb.com/help/article/2912
- Royal Malaysian Customs — Tourism tax guides (MyTTx) — RM10/room/night; exemptions; 4-room registration exemption; quarterly returns; 7-year records. myttx.customs.gov.my/wp-content/uploads/2025/03/Guide-on-DPSP-11032025.pdf
- Royal Malaysian Customs — MySST service tax FAQ — 8% rate; SST-02 every two months, due last day of following month. mysst.customs.gov.my/faq-services-tax/
- LHDN — Individual tax rates YA 2023–2025 — Resident bands 0%–30%, 25% on RM100,001–400,000. hasil.gov.my/en/individu/kadar-cukai/
- LHDN — Return Form Filing Programme 2026 — BE 30 April, B 30 June, 15-day e-filing grace. hasil.gov.my/wp-content/uploads/program-memfail-bn-bagi-tahun-2026.pdf
- LHDN — Public Ruling 12/2018, Income from Letting of Real Property — Business vs non-business letting; deductible expenses; no capital allowances for non-business. phl.hasil.gov.my/pdf/pdfam/PR_12_2018.pdf
- LHDN — Individual income tax introduction & RPGT rates — Non-resident flat 30%; RPGT schedules. hasil.gov.my/en/individu/pengenalan-cukai-pendapatan-individu/ ; hasil.gov.my/en/rpgt/real-property-gains-tax-rpgt-rates/
- The Star — national STR guideline status (22 Nov 2025) — KPKT guideline to go to Cabinet and National Council for Local Government. thestar.com.my/news/nation/2025/11/22/tighten-rules-on-short-term-rentals
Questions
Frequently Asked Questions: Kuala Lumpur STR Taxes
Mr Props Team
Property & Short-Term Rental Tax specialists
Make Tax Season a Non-Event
Mr. Props tracks your STR income, expenses and remittances all year, so your Malaysia filing is ready to file instead of reconstructed in a panic.
Join Hosts Running Smarter Portfolios
Monthly tactics on STR tax, pricing and operations — written for operators, not accountants.
No spam. Unsubscribe anytime.