Quit Rent in Malay: Cukai Tanah, Cukai Pintu and Cukai Petak Explained for Factory Owners

Key Takeaways

• Quit rent in Malay is cukai tanah. It is the yearly rent on land, billed by the state land office under the National Land Code.
• Assessment tax is cukai taksiran, which most people call cukai pintu. It is a separate yearly charge from the local council under the Local Government Act 1976. Paying one does not settle the other.
• Cukai petak (parcel rent) replaces cukai tanah on a strata title. It is not an extra tax on top (PDT Hulu Selangor).
• Quit rent follows land area; assessment follows annual value. An industrial lot under 2 hectares in a Klang Bandar area is rated at 140.60 sen per square metre a year, about 6.5 times the residential rate there (Selangor State Assembly, 2017).
• Unpaid bills hit in different ways. The land office can forfeit the land. The council can seize movable property found on the premises, which can include a tenant's machines and stock.

This guide is general information, not legal or tax advice. Confirm your figures with the land office, the council or your lawyer.

What is quit rent in Malay?

Quit rent in Malay is cukai tanah. "Quit rent" is the everyday English name. The National Land Code simply says "rent", and section 5 defines it to include any annual sum payable to the State Authority by way of rent. The Selangor land office FAQ uses cukai tanah and also the older phrase hasil tanah, so you may see both.

It is charged on alienated land, whatever stands on it: a house, a factory or nothing at all.

The words you will meet on a bill

English	Malay	What it means
Quit rent	Cukai tanah, hasil tanah	Yearly rent on land, paid to the state
Parcel rent	Cukai petak	Yearly rent on a strata parcel, replacing quit rent on the master title
Assessment tax	Cukai taksiran, cukai pintu	Yearly charge by the local council on a holding
Annual value	Nilai tahunan	The yearly rent the holding could reasonably earn, as estimated for assessment
Holding	Pegangan	Land, with or without a building, as the council rates it
Arrears	Tunggakan	An amount unpaid after the deadline
Notice of demand	Notis tuntutan (Borang 6A)	The land office's final demand for unpaid quit rent

What is the difference between quit rent and assessment tax?

Quit rent goes to the state for holding the land. Assessment goes to the local council, and DBKL describes it as funding city services and upkeep. They come from different laws, different offices and different calculations.

	Cukai tanah (quit rent)	Cukai petak (parcel rent)	Cukai taksiran or cukai pintu (assessment)
Charged by	State land office	State land office	Local council, such as MBDK, MBSA or DBKL
Law	National Land Code, sections 93 to 101	Strata Titles Act 1985, section 23C(8)	Local Government Act 1976, sections 127 and 130
Based on	Land area x rate	Parcel area x rate	Annual value x council rate
Payment	Once a year	Once a year	Two half-yearly instalments
Deadline	Arrears from 1 June	1 January to 31 May in Selangor	Arrears after end February and end August
Liable	Registered proprietor	Registered parcel owner	Owner of the holding
If unpaid	Late fee, Form 6A, then forfeiture of the land	Late fee after 31 May	Council charges, seizure of goods, then sale of the holding

Is cukai pintu the same as cukai taksiran?

Yes. MBDK's FAQ puts the two names side by side: "Cukai Taksiran Am atau Cukai Pintu". The formal term is cukai taksiran, and cukai pintu (literally "door tax") is the name people use in conversation.

How is quit rent calculated?

The formula is simple: quit rent = land area x the rate for that land. Under section 96 of the National Land Code, when the rate is per square metre, any fraction of a square metre counts as a full one.

The rate is the part that varies. Selangor's rates differ by district, by whether the land sits in a Bandar, Pekan or Desa (Mukim) area, and by land use (Selangor State Assembly, 2011). The schedule below is the latest we could find. It took effect on 1 January 2017 under the Selangor Land Rules 2003 as amended in 2016.

What are Selangor's industrial quit rent rates?

Figures are the "Perusahaan" rates in sen per square metre a year, shown as under 2 hectares / over 2 hectares (Selangor State Assembly, 2017).

District	Bandar	Pekan	Desa (Mukim)
Gombak, Petaling	246.00 / 273.10	105.50 / 109.20	105.50 / 109.20
Klang	140.60 / 145.60	63.30 / 65.60	63.30 / 65.50
Hulu Langat	57.10 / 54.60	32.80 / 33.90	32.80 / 33.90
Sepang	52.80 / 54.60	31.70 / 32.80	30.50 / 31.70
Kuala Langat	52.70 / 54.60	31.70 / 32.80	30.50 / 31.70
Hulu Selangor	49.00 / 50.90	29.40 / 30.50	29.40 / 30.50
Kuala Selangor, Sabak Bernam	41.50 / 43.30	23.80 / 24.90	23.80 / 24.90

The same schedule sets minimum payments for lots under 2 hectares. For Bandar and Pekan land these are RM175 in Gombak and Petaling, RM158 in Kuala Langat and Sepang, and RM129 in Kuala Selangor and Sabak Bernam. For Desa land in those districts the minimum is RM140.

How much is that on a one-acre factory lot?

One acre is about 4,047 square metres. This is arithmetic from the published rates, not a quote for any real lot.

Land on the title	Rate (sen per sq m)	Quit rent a year
Petaling, Bandar	246.00	RM9,955.62
Klang, Bandar	140.60	RM5,690.08
Klang, Pekan or Desa	63.30	RM2,561.75
Hulu Selangor, Bandar	49.00	RM1,983.03

Your bill is the final word, because the rent payable is endorsed on each title (section 101(6)). For how the title itself is read, see our guide to land titles in Malaysia.

Will Selangor's quit rent rates change?

They can, but not at any time. Section 101(5) says a revision cannot take effect until ten years after the last one, so if the last revision is the one effective from 1 January 2017, the earliest date is 1 January 2027. As of 3 November 2026 we found no announcement of new Selangor rates.

What about Negeri Sembilan and Kuala Lumpur?

MIDA's 2024 cost guide lists industrial quit rent of RM1,976.84 to RM7,700 per hectare a year in Negeri Sembilan, against RM2,700 to RM24,000 per hectare in Selangor. We did not find a published industrial schedule for Kuala Lumpur, so read the figure on your bill through the Federal Territory e-Tanah portal. For how these costs play out on a purchase around Rawang, Serendah and Shah Alam, Jason Low has a separate guide on quit rent for industrial land.

How is cukai taksiran calculated?

Assessment = annual value x the council's rate. The Local Government Act 1976 defines annual value as the reasonable gross yearly rent the holding could be expected to earn if let, with the landlord paying for repairs, insurance, maintenance and rates. Section 130 caps the rate at 35% of annual value. DBKL's FAQ adds that an owner-occupied property is valued the same way, as if it were rented out.

With round numbers for the arithmetic only: an annual value of RM120,000 at 7.5% comes to RM9,000 a year, or RM4,500 each half year.

What rate do Selangor councils charge industrial property?

The fullest council-by-council list we could find was tabled in the State Assembly in 2016, so treat it as a guide and check your own bill. MIDA's 2024 guide gives a range of 8% to 13% for both Selangor and Negeri Sembilan.

Council area	Industrial rate tabled in 2016
Shah Alam	7.5% building, 7.0% vacant land
Klang	11.5% commercial centre, 10.5% developed area, 7.5% developing area, 3.25% Malay reserve
Subang Jaya	6.0%
Selayang	12.0%
Kajang	9.35% to 11.0% outside Malay reserve areas
Sepang	9.45%
Hulu Selangor	8.0%
Kuala Langat	13.0% Telok Panglima Garang and Pulau Carey, 14.0% Banting

In Kuala Lumpur, DBKL's FAQ lists commercial buildings at 10% inside the 36 square mile area and 8% outside. Its assessment table has no separate factory or industrial class, so ask DBKL which class applies to yours.

Why does my bill not match rate x value?

Selangor's 12 councils brought in new assessment figures from 1 January 2025 with the increase capped at 25%. The Star's example: a RM100 bill that revaluation would have doubled to RM200 rises only to RM125. The State Assembly was told in 2025 that this adds RM382 million a year for the councils. The cap means a rate table alone may not reproduce your bill.

When are they due, and what happens if they are not paid?

Quit rent and parcel rent

Section 94 says quit rent falls due in full on 1 January and is in arrears from 1 June. Selangor's land office therefore gives a payment window of 1 January to 31 May, and says the owner must pay even if no bill arrived.

The late fee scale in Selangor is RM1 on arrears up to RM10, RM2 up to RM50, RM5 up to RM100, and 7% of the amount payable once arrears pass RM100. Most factory bills sit in the 7% band, so the one-acre Klang Bandar lot above would pay about RM398 extra.

If it stays unpaid:

1. The land office serves a notice of demand in Form 6A, and a note of it is endorsed on the title (section 97).
2. A chargee, a lessee or a protected tenant may pay the sum demanded to protect their interest (section 98).
3. If it is not settled within three months of the notice, the land can be forfeited to the state (section 100).

Assessment tax

Section 133 makes assessment payable half-yearly in advance, in January and July. Under section 147, an amount unpaid at the end of February or August becomes arrears, with whatever charges the council sets.

The council must first give 15 days' notice in Form E. It can then issue a warrant of attachment under section 148 and seize movable property of the owner or occupier, and movable property of anyone found on the holding. If that does not recover the debt, the holding itself can be attached and sold by order of the High Court Registrar (section 151). Section 146 also makes unpaid assessment a first charge on the holding, subject to the National Land Code.

What changes for a factory or warehouse compared with a house?

The land rate is many times higher

In a Klang Bandar area, the 2017 schedule charges 21.70 sen per square metre for residential land and 140.60 sen for industrial land under 2 hectares. In Gombak and Petaling Bandar areas it is 32.50 sen against 246.00 sen, about 7.6 times. A factory also tends to sit on far more land than a house, so quit rent is a real line in the budget, not a small fee.

If you are buying

Check both bills, not just one. A land search can show a Form 6A note on the title, and unpaid assessment can follow the holding. The Selangor land office also says a buyer is responsible for the bill once the sale and purchase agreement is signed, so ask your lawyer to apportion the current year at completion and to get the latest receipts.

Add these to the one-off costs in our legal fees and stamp duty calculator. To compare land prices paid across the area, see registered factory deals in Klang and Port Klang, or browse factories for sale in Klang.

If you are renting

The law looks to the owner for both bills, whatever the lease says about who bears the cost. The risk to a tenant is seizure, because section 148 reaches goods found on the holding. Section 151 gives a tenant-occupier a way out: pay the rent directly to the council as it falls due until the arrears are cleared, then deduct those payments from later rent. Ask to see the latest receipts before you sign and again each year.

If your factory is on a strata title

The Strata Titles Act calculates parcel rent per square metre for each parcel. Selangor sets it at 25% of the quit rent rate for strata schemes other than low-cost, with minimum payments. The land office's own examples cover residential and commercial parcels, so read your bill for an industrial unit. Before strata titles are issued, the master title's quit rent is still collected through the JMB or MC.

What are the common mistakes?

• Treating a cukai pintu receipt as proof the land is clear. It says nothing about quit rent.
• Waiting for a bill in the post. Not receiving one does not excuse payment.
• Using a flat rate from a website. The Bandar rate in Klang is nearly three times that in Hulu Selangor, so a single state figure can be far off.
• Reading the 25% as the assessment rate. It is a cap on the 2025 increase, not the percentage applied to annual value.
• Relying only on a lease clause. Even if the tenant bears the cost, the owner should check it has been paid, because forfeiture falls on the owner's land.

Frequently Asked Questions

What is quit rent in Malay?

Quit rent in Malay is cukai tanah, and some land office pages also call it hasil tanah. It is the yearly rent a landowner pays to the state under the National Land Code. It is separate from cukai pintu, which is paid to the local council.

Is cukai pintu and cukai taksiran the same?

Yes, they are the same charge. Cukai taksiran is the formal name and cukai pintu is the everyday name, as MBDK's FAQ shows. It is charged by the local council on the annual value of the holding.

How is quit rent calculated?

Multiply the land area by the rate for that land. In Selangor the rate depends on the district, on whether the land is Bandar, Pekan or Desa, and on its use. A one-acre industrial lot in a Klang Bandar area works out to about RM5,690 a year at 140.60 sen per square metre, and the bill for your title is the final figure.

How do I check my quit rent online?

In Selangor, use the e-Tanah portal with the 14-digit account number or title details. Kuala Lumpur has its own Federal Territory e-Tanah portal. Elsewhere, including Negeri Sembilan, the district land office can give you the bill if you bring the title number.

Do you have to pay property tax in Malaysia?

Malaysia has no single "property tax", but owners do pay two yearly charges: quit rent to the state and assessment to the council. On top of that, stamp duty applies when you buy, as our Stamp Act guide explains, and real property gains tax can apply when you sell.

What is cukai petak in English?

Cukai petak is parcel rent. It is charged on a strata title, such as a strata factory unit, and it replaces quit rent on that unit rather than adding to it. Each parcel owner pays it once the strata title has been issued.

Who pays quit rent and assessment on a rented factory?

By law the owner is responsible for both. A lease can make the tenant bear the cost, but that is only a private arrangement between the two parties. A tenant should still ask for receipts, because a council can seize goods found on the premises when assessment is in arrears.

FactoryHub is dedicated to helping every client find the right factory or warehouse. For a factory or warehouse in Klang, Port Klang or the rest of Selangor, contact Peter Tan (REN 12771) at 016-666 6872 or Jason Low (PEA 1478) at 012-288 1834.