Assessment Tax and Quit Rent After Buying Property in Malaysia: Transferring the Account and Paying on Time (Johor Bahru Example)

Owning property in Malaysia means two annual levies paid to two different bodies: assessment tax (cukai taksiran) to the local council and quit rent (cukai tanah, or cukai petak for a strata unit) to the state land office. The assessment account also has to be transferred into your name by you; otherwise the bills keep going to the previous owner or the developer.

Assessment tax vs quit rent

Johor Bahru and Johor shown as examples; other councils and states publish their own.

Why the assessment account must be transferred

Under section 160 of the Local Government Act 1976, both seller and buyer must notify the local council (Form I) within three months of a sale or transfer. Failing to do so can, on conviction, mean a fine of up to RM2,000, up to six months’ imprisonment, or both.

Only after the transfer do the bills come to you, and MBJB states that not receiving a bill is no ground for waiving a penalty.

Transferring the account with MBJB

1. Clear any arrears on the property first.
2. Use the right form: Form I for a sale or inheritance, Form J on the owner’s death.
3. Apply online through the PMO online transfer system at johor.ekhidmat.my. The fee is RM50 per transaction.
4. Documents: a copy of each owner’s identity card (Form 9 or 13 for a company), plus one of:
   • the land title showing the latest owner’s name;
   • the qualified title in the original owner’s name together with Form 14A;
   • for a condominium without strata titles yet, the front page, page 1 and First Schedule of the sale and purchase agreement.

To have bills sent to a different address, submit Form P-03 to the council’s valuation department.

New projects: when do you start paying?

Under clause 21 of Schedule H, quit rent, assessment and similar outgoings become yours from vacant possession or transfer of the parcel, whichever is earlier. Until the strata title is in your name, the developer, JMB or MC pays them and you reimburse that share.

Once strata titles are issued, the land office charges quit rent per parcel (cukai petak).

Paying quit rent

In Johor, quit rent bills and payment history can be checked and paid online through the state land office’s Hasil Hub. Payment runs from 1 January to 31 May, with a 20% penalty after that. If it remains unpaid, the land office issues a Form 6A notice, and land still unpaid three months later can be forfeited. Our guide to late payment interest sets out each penalty.

Think your assessment is too high?

Under section 142 of the Local Government Act 1976 you may lodge a written objection with the council within the stated period, for example on the ground that the property is valued above its rateable value, undervalued, or missing from the valuation list. The council will call you to a hearing, to which you bring a valuation report from a private valuation firm.

Related

• Collecting the keys: the handover checklist
• Late payment interest
• Buying subsale: 6 checks

Sources

1. Majlis Bandaraya Johor Bahru, assessment tax page (updated 24 September 2026): transfer procedure, Forms I and J, johor.ekhidmat.my, RM50 fee, documents, Form P-03, section 142 objections, payment periods and late charges. Page
2. Kedah local authority, "Pindahmilik Cukai Taksiran": section 160 of the Local Government Act 1976, notice by both parties within three months, fine up to RM2,000 or six months’ imprisonment. Document
3. Johor Land and Mines Office, Hasil Hub: quit rent period, 20% late penalty, Form 6A. Page
4. Housing Development (Control and Licensing) (Amendment) Regulations 2015, P.U.(A) 106/2015: Schedule H clause 21. Document
5. JKPTG, "Hakmilik Strata" FAQ: payments by strata title owners. Page

Assessment shown for Johor Bahru and quit rent for Johor; other councils and states publish their own rules. Last verified: 12 October 2026.