Assessment Tax

What is assessment tax?

Assessment tax (cukai taksiran / cukai pintu) is enforced in accordance with the provisions of Section 17 of the Local Government Act 1976 (Act 171). It is a tax levied on real property located within the MPSJ area:

A) Residential - Terrace houses, semi-detached houses, detached houses/bungalows, townhouses, flats, apartments, condominiums, shop-houses, etc.

B) Commercial - Shops, shop/offices, shopping malls, cinemas, offices, hotels, petrol stations, recreational centers.

C) Industrial - Terrace factories, semi-detached factories, and detached factories.

D) Vacant Land - Agricultural land, development land.

1. Authority to Enforce Assessment Tax
Enforced in accordance with the provisions of Part XV of the Local Government Act 1976 (Act 171).
2. Valuation Level and Rating Area

The Council has divided its administrative area into two areas, namely:
These two Valuation Levels are due to the re-demarcation of areas within the Petaling District Council back in January 1997.

a.
Subang Jaya, PJS 7, 9, 11, and Bandar Sunway 
1992 Valuation Level
b.


 


Other areas apart from Subang Jaya, PJS 7, 9, 11, and
Bandar Sunway 
1996 Valuation Level
3. How is Assessment Tax calculated?
Assessment Tax = Annual Value x Rate (%)
4. What is meant by Annual Value?
For buildings, the Annual Value is the estimated gross annual rent that the holding can reasonably be expected to fetch from year to year if let, with the landlord paying the expenses for repairs, insurance, maintenance or upkeep, and all public rates and taxes. For vacant land, the Annual Value is determined based on 10% of the market value of the land.
5. Can the Assessment Tax amount be amended after it has been enforced?

Yes. Section 144 of the Local Government Act 1976 allows amendments to the Assessment Tax valuation (amendments to the valuation list) to be made due to:

a) any rateable holding being insufficiently valued or overvalued, or because for any other reason, a rateable holding has been omitted from the Valuation List;
b) any building being erected, remodeled, altered, demolished, or reconstructed, or other improvements made to a rateable holding, thereby increasing its value;
c) any building or part of a building being demolished, or any other work carried out on the rateable holding, thereby decreasing its value;
d) any rateable holding that has been included in a joint valuation and which, in the opinion of the Valuation Officer, should have been valued separately or otherwise;
e) the issuance of any new title regarding a holding;
f) any change to the rateable holding caused by any law relating to planning, resulting in a change in its value separately or otherwise;

6. When will the Amendment to the Valuation List process be carried out?
a) The issuance of the Certificate of Fitness for Occupation (CFO) / Certificate of Completion and Compliance (CCC) for new buildings.
b) The issuance of new land titles (subdivision and amalgamation of land lots).
c) Changes to express land conditions/restrictions.
d) Material changes in the use of the building, for example, from residential to a nursery, or from an office building to a Budget Hotel.
e) The issuance of the Certificate of Fitness for Occupation (CFO) / Certificate of Completion and Compliance (CCC) for renovations and extensions to existing buildings.
f) Extensions and additions to an existing building, even if it has not received a Certificate of Fitness for Occupation (CFO) / Certificate of Completion and Compliance (CCC).
g) A building has been occupied by the property owner, even if it has not received a Certificate of Fitness for Occupation (CFO) / Certificate of Completion and Compliance (CCC).
7. How is the Annual Value determined for a building that is owner-occupied and not for rent?
Owner-occupied buildings, buildings that can be rented out but left vacant, and rented buildings all have a "Rental Value." Therefore, to determine the Annual Value of a building, the building will be assumed to be "vacant and for rent," and the estimated monthly rent is based on the rent paid for similar buildings nearby.
8. When can an Amendment to the Assessment Tax Valuation be made?
The Council may at any time amend the valuation accordingly based on the reasons stated above.
9. Is a change in Assessment Tax due to an Amendment to the Valuation List the same as a Revaluation of Assessment Tax?
No. An amendment to the valuation list is only implemented for holdings that fall into the categories specified under Section 144 above. The rental rate used is the old rental rate that was applied to the original building of the holding. On the other hand, the Revaluation process is the enforcement of new valuations implemented simultaneously across all holdings within the Council area, where the rental rate applied is the current annual rental rate at the time the revaluation is carried out.
10. How are owners notified of this Assessment Tax increase?
All affected holding owners will receive a Notice of Amendment to the Valuation List stating the new Annual Value and Assessment Tax along with the effective date of the Assessment Tax.
11. How is the calculation for the Assessment Tax increase for building extensions/additions made?
Area of extension / addition building
x
Rental rate per square meter
(per month)
x
12 months
=
Total annual rent
for the extension
building
     
(+)
Old Annual Value
     
 
----------------
     
=
New Annual Value
     
(x)
Rate (%)
     
 
----------------
     
=
New Assessment Tax
12. How is the calculation of Assessment Tax for vacant land made?

For vacant land, the Annual Value is determined based on 10% of the market value of the land.
A person aggrieved on any of the following grounds:

i.) that any holding for which he is rateable is valued at more than its rateable value;
ii.) that any holding valued is an exempt holding;
iii.) that any person or holding which ought to be included in the valuation list is omitted therefrom;
iv.) that any holding is valued at less than its rateable value; or
v.) that any holding or holdings which have been valued jointly or separately ought to be valued otherwise.

May make a written objection to the Council within the period specified in the Notice of Amendment to the Valuation List and shall be given an opportunity of being heard either in person or by an authorized agent.

Last Updated : 01 July 2026