ABSTRACT
The property tax which funds local authority expenditure in Malaysia is called rates. In Malaysia, the basis for the collection of local authority property-based rates is the rateable value, which is the annual value of the ownership of property. This applies in all the ten States of Peninsular Malaysia, except in Johore, where the 'improved value' (capital value) is used. This is because the Malaysian Local Government Act allows a state authority to opt for annual rental or capital value as a basis for rates, at their discretion.
