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The RM10,000 tax deduction for interest on housing loans will only be applicable for one
property which is not being rented out. The incentive also applies to Malaysian citizens

who will live on the property, whether it’s a house, flat, apartment or condominium. Inland
Revenue Board chief executive officer Datuk Hasmah Abdullah said the sales and
purchase agreement for the property had to be executed between March 10, 2009 , and
Dec 31, 2010. “The tax deduction is given for three consecutive years from the first year
the housing loan is paid and is effective from the year of assessment 2009. Also, if there
are two or more individuals who are eligible for the tax deduction, each individual is
allowed a deduction which is proportionate to the interest they had paid,” she said.
Hasmah said this deduction, however, would not exceed RM10,000 in total. (Star)
This means the property incentive in the mini budget is only for new purchases from March
10, 2009 onwards and does not include existing housing loans. This is to spur new sales
given the lacklustre demand for properties in the past year.