MALAYSIA DEVELOPMENT

CHARGES
BEA2054 - REAL ESTATE TAXATION
AND VALUATION

KELVIN CHONG KHAI WEN

20200128
 MALAYSIA DEVELOPMENT CHARGES
BEA2054 - REAL ESTATE TAXATION AND VALUATION

• Development charges imposed when land is converted, plot ratios are increased,
or density is increased, all of which raise the land value. While the local
governments view the development charge as one of their income sources for
providing utilities to the society, property developers’ communities still contend that
the charge surges development uncertainty. Development charge have been imposed
on property development carried out in accordance with the provisions of Section 32
of the Town and Country Planning Act 1976 (Act 172).

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• BEA2054 - REAL ESTATE TAXATION AND VALUATION

In general, a development charge is

a fee imposed by the local planning
authority on a property owner or
developer in exchange for the
purpose of obtaining planning
permission involving an increase in
TYPES/CATEGORY land value, increased floor area or
plot ratio, or density. Malaysia's
FEES ON land and property development
rules, regulations, and guidelines
DEVELOPMENT are fairly comprehensive.

CHARGE
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TYPES/CATEGORY FEES ON
DEVELOPMENT CHARGE 30% of increment from existing of Market Value
Land Conversion ascertained by Valuation department of LA (Further
Premium Rate charge for change category land use from
Commercial to Residential is 1%)

i. 30% of increment from the existing market value ascertained by the valuation
department. Development that results in an increase in land value due to change in
land use, change in density or plot ratio of any land from :

Expand Density Complete Development Plan

The Federal Territory (Planning) (Density Zone) Rules 1985 [P.U. (A) 501/1985)

The Development Order issued and having effect in respect of the land.

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Icon ii. 50% of the amount of land value increase

Excess in Floor Area

RM 4 per sq.ft in every excess (not in Pelan Pembangunan Lengkap PPL 1039)

RM 6 per sq.ft in every excess as in Pelan Pembangunan Lengkap PPL 1039

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TYPES/CATEGORY FEES ON
DEVELOPMENT CHARGEIcon
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Residential units that is excessed RM 4,000 for exceeding units

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Development subject to requiring
RM60000 for one placeholder a car that doesn’t provided
conditions allocated parking space.

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THANKS !