What if you have forgotten about paying your annual rates (kadar)?

Thomas Sim PEA2066

Q.
What is the penalty if the property owner does not pay the assessment rates?

A.
1) A fine of RM 20 (for outstanding amount exceeding RM 100).
2) Notice (Form E) shall be issued and the outstanding amount has to be settled within fifteen days from the date of the notice.
3) After the (15) fifteen days are up, a warrant of arrest shall be issued. The cost of the warrant is RM 100.
4) Notice of seizure and to sell the property by auction.
5) Legal action to be taken by the Courts.
6) All the above costs shall be included in the overall outstanding amount.

What happens if the owner of the property has sold/ transferred his property?

The owner needs to complete Form I and J (Notis Pindahmilik and Pegangan Berkadar). This form can be obtained from City Hall’s website. You can just download it, print it out and fill in your particulars.

For properties under the jurisdiction of City Hall, you should go to :

Dewan Bandaraya Kuala Lumpur,
Jabatan Penilaian & Pengurusan Harta,
Tingkat 4, Bangunan TH Perdana,
No. 1001, Jalan Sultan Ismail,
50250 Kuala Lumpur
(Tel no: +603- 261 71038).

Please remember to provide these documents:

  • A full copy of the Sale and Purchase (S&P) Agreement
  • A copy of the latest Assessment Bill showing the amount paid by you
  • A copy of the Identity Card (IC) of the relevant parties
  • Failure to do the above within three months from the date of your S&P Agreement/ transfer can result in a fine of not more than RM 2,000 or jail of not more than six months or both.

What if your property is vacant/ is uninhabited?

If your property is vacant or is uninhabited for more than 1 month, you can apply for remission (Pemohonan Pulangan Balik atau Remisi) by completing Borang Permohonan Elaun Kekosongan/ Remisi which can be obtained from your local council’s website.

This is subject to some conditions as follows:

  • The subject property is in a good and liveable condition
  • To show proof that all efforts have been done to get tenants. You would have to provide evidence of advertisements
  • That the subject property is vacant for the time period that you are applying to get the refund of the assessment paid earlier.
  • For offices, commercial properties and warehouses, only areas of more than 1,000 square feet on the same level is eligible to apply for remission.