Penang Extends Quit Rent and Parcel Rent Penalty Exemption Until May 31, 2025
Land and parcel owners in Penang can now breathe a sigh of relief as the state government has announced an extension of the 100% exemption on quit rent and parcel rent penalty arrears until May 31, 2025. This move aims to encourage property owners to settle their dues promptly and ease the financial burden for many in the state.
The exemption, initially slated to end in February, was approved by the Penang state executive council following a notable increase in tax compliance during the first two months of the year. According to a statement by the Chief Minister’s Office, from January 2 to February 21, the state saw a 14% increase in the number of quit rent and parcel rent payers — with over 17,168 new account owners settling their payments compared to the same period in 2024.
Encouraging Uptake, Higher Revenue
During this period, Penang collected RM4.4 million in revenue, marking a 25% increase, while the value of exempted fines reached RM88,637, a 46% jump year-on-year. The positive response highlights the effectiveness of the state’s incentive approach.
Despite these gains, over 86,000 parcel owners still owe arrears, with the Timur Laut district recording the highest number of defaulters (37,400 accounts), amounting to RM13.9 million in unpaid parcel rent.
Who Benefits and How
The 100% exemption is automatically granted to all land and parcel owners, including those who have received Notice of Penalty 6A (quit rent) or Notice of Penalty 11 (parcel rent). However, those making payments via instalments are not eligible for the exemption.
In addition to the full exemption, the Penang government is also offering a 50% reduction in penalty arrears for payments made between March 1 and May 31, 2025.
How to Make Payment
Eligible property owners can make payments through the following channels:
- District and Land Office revenue counters
- PgLAND online portal (in a single lump sum)
The move aligns with Penang’s ongoing efforts to enhance tax compliance and provide financial flexibility to its residents.
Why This Matters for Property Owners
This extended exemption presents an opportunity for Malaysian property investors and homeowners to clear their tax records without incurring additional penalties. It’s particularly beneficial for owners of strata properties who may have accumulated parcel rent arrears over the years.
If you’re a real estate investor or plan to buy property in Penang, ensuring your land or parcel is free from tax penalties enhances your investment’s value and appeal.
