What is assessment rate (kadaran) or Cukai Pintu?
Local government under Local Government Act, 1976 gives the power to collect taxes. One of the common taxes that it collects is the Cukai Pintu. It is paid twice a year. For Kuching/Padawan it is paid before 31 May and 31 Oct every year.
What is this tax for?
It is for the management of surrounding – drainage, street lights, rubbish, etc. under the local council. This is different from Cukai Tanah/Petak. This cukai Tanah/Petak is the land tax on the land/strata by State.
For dealings in properties, this taxes if outstanding, are needed to be paid before a successful transfer. Of course, some would say when it is not paid, the future owner shall pay. There are some case laws with regards this issue. Nevertheless, the general application of the law is that properties are transferred free from all encumbrances, hence taxes are to be fully paid before transfer.
NO MATTER WHAT, the local government can collect these outstanding from whoever the new owner if the old owner did NOT pay.
This is specified in one of the FAQ of KL City Hall DBKL website:
“As a buyer, you must ensure that all debts on the property obtained have been cleared. City Hall only helps in making a breakdown in arrears. If the seller does not pay the arrears, the buyer is responsible for making the payment.”
No.4 FAQ, DBKL Website at: