Are Rental Property Repairs Tax Deductible in Malaysia? Landlord Guide (2026)

Repairs may be deductible when they are incurred to maintain a rental property that is already producing rental income. Improvement, renovation and capital upgrades are different and should not be treated casually as repairs.

Street rule

If the expense restores the property to its existing rentable condition, it is more likely to be repair. If it upgrades, expands or creates a new advantage, treat it carefully and keep tax advice or records.

Examples

• Likely repair: fixing a leaking pipe, replacing a broken lock, repainting after tenant damage where supported by records.
• Potential capital/improvement: adding built-in cabinets, major renovation, upgrading basic fittings to premium fixtures before renting.

Keep invoices, photos, tenancy dates and rental-income records. For the broader landlord tax guide, see Malaysian landlord tax deductions.