Many SME bosses think buying property under their Sdn Bhd is a smart move … better image and maybe lower tax!!!

But once your company’s main income comes from rental, interest, or dividends, it may be classified as an Investment Holding Company (IHC) under Section 60F. And that single label changes everything.

Here’s the real tax story no one tells you :

Flat 24% tax rate : you lose all SME benefits.
Limited expense deduction : only up to 5% of investment income.
No capital allowances, no loss carry forward.
RPGT still applies : even after 6 years, you still pay 10%.

Dividends may be tax-free, but all related costs are disallowed.

In short, what looks like a smart move could quietly raise your tax bill.

Sometimes, owning property personally saves more tax than holding it under a Sdn Bhd.

If you own multiple properties, the next thing to watch isn’t RPGT, it’s income tax. I’ll cover this hot topic in our next KTP tax blog.

Read the full story here :
https://lnkd.in/gNSTNgXh