What is Quit Rent?

Quit Rent serves as land grants in forms of tax. Does it affect you and your development, or will it affect your business?

Quit rent is a form of levy or land tax imposed on freehold or leased land by a higher landowning authority, usually government or its assigns.

Under feudal law, the payment of quit rent freed the tenant of a holding from the obligation to perform such other services as were obligatory under feudal tenure. In post-feudal times, quit rents have continued to be imposed by some governments, usually attached to land grants as a form of land tax.

Some governments have now abolished the quit rent system and relieved those with a nominal quit rent obligation from the requirement to pay it, replacing quit rents with a uniform system of land tax. In Malaysia, quit rent remains an important means of raising revenue from landowners.

Quit rent in Malaysia is defined as a form of land tax collected by State Governments. It is imposed on owners of all alienated land although owners of certain pieces of land (such as those used for religious purpose) are exempted from payment. The amount of quit rent varies from state to state and within each state it also varies according to locality and category of land use.

Generally, all states have different rates for Agricultural, Building or Industrial land. Under each category of land use such as Building, there are again different rates depending on whether the land is used for commercial or residential. Not all land used for residential purpose has the same rate. This again depends on whether the land is located in a town or village.

The National Land Code makes it an obligation of the landowners to pay the quit rents by a certain date without being informed to do so. The last date for payment of quit rent varies from state to state, but most states have 31st May of each year as the deadline. Payments after the deadline are subjected to a penalty. Landowners who do not pay their quit rent by the deadline are also liable to lose their properties as the state can begin proceedings to forfeit the Malaysian property.

(a) Petrol Kiosk:
Country land
65.00 per ha
Village land
100.00 per ha
Town land third layer
110.00 per ha
Town land Second layer
140.00 per ha
Central Business District
160.00 per ha
(b) Shop House:
Country land
35.00 per 100 sm
Village land
50.00 per 100 sm
Town land third layer
65.00 per 100 sm
Town land Second layer
85.00 per 100 sm
Central Business District
110.00 per 100 sm
(c) Stall:
Country land
17.00 per 100 sm
Village land
27.00 per 100 sm
Town land third layer
33.00 per 100 sm
Town land Second layer
44.00 per 100 sm
Central Business District
54.00 per 100 sm
(d) Workshop:
Country land
33.00 per 100 sm
Village land
54.00 per 100 sm
Town land third layer
66.00 per 100 sm
Town land Second layer
76.00 per 100 sm
Central Business District
87.00 per 100 sm
(e) Market
44.00 per 100 sm
(f) Dwelling House:
Country land
7.00 per 100 sm
Village land
9.00 per 100 sm
Town land third layer
11.00 per 100 sm
Town land Second layer
13.00 per 100 sm
Central Business District
15.00 per 100 sm
(g) Land for Federal Government (Non-Revenue Department)
Country land
3.00 per 100 sm
Village land
4.00 per 100 sm
Town land third layer
5.00 per 100 sm
Town land Second layer
6.00 per 100 sm
Central Business District
7.00 per 100 sm
(h) Land for Federal Government: (Revenue Collecting Department)
Country land
7.00 per 100 sm
Village land
9.00 per 100 sm
Town land third layer
11.00 per 100 sm
Town land Second layer
12.00 per 100 sm
Central Business District
14.00 per 100 sm
(i) Port:
Port Area
125.00 per ha
(j) Airport:
Runway
125.00 per ha
Building
85.00 per 100 sm
(k) Reservoir:
Building
30.00 per 100 sm
Pipe Line
150.00 per ha
Water Catchment Area
120.00 per ha
Water Dam
300.00 per ha
(l) Railway:
Railway Station
100.00 per 100 sm
Medium Railway Transport (MRT)
5.00 per 100 sm
Light Railway Transport (LRT)
3.00 per 100 sm
(m) Transmission System:
Satellite
540.00 per 100 sm
Transmitter/Receiver
540.00 per 100 sm
(n) Power Supply and Communication:
Power Station
55.00 per 100 sm
Main Intake
45.00 per 100 sm
Sub-Station
35.00 per 100 sm
Exchange
325.00 per 100 sm
(o) Car Park:
Open Car Park
22.00 per 100 sm
Indoor Car Park
65.00 per 100 sm
(p) Private Services:
Private Museum
6.00 per 100 sm
Private Zoo
50.00 per ha
Private School
50.00 per 100 sm
Private Hospital
85.00 per 100 sm
Private Burial Ground/Memorial Park
22.00 per 100
Others Private Services
Decided by State Authority
(q) Jetty
160.00 per 100 sm
(r) Underground Building:
Basement Car Park
16.00 per 100 sm
Basement Business Centre
16.00 per 100 sm
Undersea World
35.00 per 100 sm
(s) Transmission Line
300.00 per ha
(t) Passageway:
Highway
200.00 per ha
Gas Pipe
300-00 per ha
(u) Golf:
Golf Course/Golf Driving Range
250.00 per ha
Club House
215.00 per 100 sm
(v) Recreation/Amusement:
Country land
33.00 per 100 sm
Village land
54.00 per 100 sm
Town land third layer
65.00 per 100 sm
Town land Second layer
76.00 per 100 sm
Central Business District
87.00 per 100 sm
(w) Tourist Centre:
First Class (High Class)
248.00 per ha
Second Class (Middle Class)
149.00 per ha
Third Class (Economy Class)
99.00 per ha
Fourth Class (Part Time)
50.00 per ha
(x) Organisation/Association
11.00 per 100 sm
(y) Religious Purposes (non Muslim)
2.00 per 100 sm
(z) Hotel:
Country land
160.00 per 100 sm
Village land
270.00 per 100 sm
Town land third layer
380.00 per 100 sm
Town land Second layer
380.00 per 100 sm
Central Business District
430.00 per 100 sm
(aa) Land for Multi-Storey Building:
Residential:
Low cost not more than RM50,000
50.00 per 100 sm
Medium cost between RM50,000 to RM150,000
100.00 per 100 sm
High cost more than RM150,000
200.00 per 100 sm
Commercial:
Other Class of Land
100.00 per 100 sm
Town Land second Layer
300.00 per 100 sm
Central Business District
400.00 per 100 sm
Industrial:
Other Class of Land
200.00 per 100 sm
Town Land second Layer
400.00 per 100 sm
Central Business District
500.00 per 100 sm
Service industry:
Other Class of Land
200.00 per 100 sm
Town Land second Layer
400.00 per 100 sm
Central Business District
500.00 per 100 sm
(ab) Land under Central Business
District, Town Land Second Layer
and Village Land Subject to
condition under section 53 (2) (b)
of the code
60.00 per ha
(ac) Land subject to condition under
section 53 (3) but not subject under
Table XIII of  The Code
60.00 per ha
(ad) Land subject to condition under
Table XIII of The Code
60.00 per ha
(ae) Marina
55.00 per 100 sm
(af) Horse Riding Area
500.00 per ha
(ag) Grand-Prix Circuit
25.00 per ha
(ah) Other Building
Decided by the State Authority
3.  INDUSTRIAL LAND:
Light Industry
1,000.00 per ha or part thereof subject to a minimum of RM1,000.00
Medium Industry
1,300.00 per ha or part thereof subject to a minimum of RM1,300.00
Heavy Industry
1,500.00 per ha or part thereof subject to a minimum of RM1,500.00
4.  NON-CATEGORIAL LAND WITH SPECIFIC USAGE:
(a) Sand
Sand
248.00 per ha
River Sand
124.00 per ha
Sea Sand
62.00 per ha
Silica
495.00 per ha
(b) Lime Stone
124.00 per ha
(c) Earth
Clay
371.00 per ha
Earth for Brick
198.00 per ha
(d) Rock
250.00 per ha
5.  LAND WITHOUT CATEGORY AND USAGE
Decided by State Authority
PROVISO:
  • The rent for land alienated for rubber, cocoa, coffee, oil palm and coconut which is not more than 4 hectares, will be RM5.00 per hectare per annum, for the first 4 years.
  • The rent for land under category of “mixed-crop” will be based on the rate of the main-crop.
  • The rent for Country-land under Category of Agriculture without specific condition, shall be at the rate prior to the amendment of the rent 1994.

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