Rental income is liable to tax if the property is situated in Malaysia. This is applicable even though you are not residing in Malaysia or may be a non-resident. Rental income is taxable when it is due and payable to the property owner.
For example, your tenant rented your property from Aug 2012 – Dec 2012. He paid the rent for this period. In Jan 2013, you need to declare the rent for Aug – Dec 2012 in year of assessment 2012 as the rent was due and payable to you in 2012.
The rental is taxed on all the joint owners based on their share in the property, regardless which party receives the rent or whether the owners paid for the property.
Costs you incur to place the property in service, manage it and maintain it are usually deductible. Even if your rental property is temporary vacant, the expenses are still deductible while the property is vacant and held out for rent. Deductible expenses include but not limited to the following: