Quit Rent in Selangor for a Factory or Industrial Land: How Much It Costs and What Buyers in Rawang, Serendah and Shah Alam Should Check

Key Takeaways

• Quit rent (cukai tanah) on industrial land in Selangor is listed by MIDA at RM2,700 to RM24,000 per hectare per year. That works out to roughly RM1,090 to RM9,710 a year for a one acre factory lot, far above what most people expect from their house bill (MIDA, cost of industrial land).
• The exact figure belongs to the title, not the area. Two lots in the same Rawang or Serendah estate can carry different rents, so read the bill for that title on e-Tanah Selangor before you budget.
• The bill comes from the district land office, not the council. Rawang titles sit in Gombak district, Serendah, Batang Kali and Bukit Beruntung in Hulu Selangor, and most of Shah Alam in Petaling.
• Unpaid quit rent stays with the land. The land office charges a late fee from 1 June, issues a Form 6A demand, and can act to forfeit the land under section 100 of the National Land Code after three months (PDT Petaling).
• Converting agricultural land to industrial use brings a new rent. The National Land Code approval notice for a section 124 conversion lists the further premium and the new rent together (National Land Code, Form 7B).

When a factory buyer in Rawang or Shah Alam asks me about holding costs, quit rent is the line most people guess wrong. On a house it is a small yearly bill. On an industrial lot of one or two acres it is a real number, and arrears on the title can hold up a sale. This guide sets out what quit rent on industrial land in Selangor is, how much it usually costs, where to check it for a lot in Rawang, Serendah or Shah Alam, and what I check on the title before a client pays a deposit.

What is quit rent in Selangor, and is it the same as cukai taksiran?

Quit rent, or cukai tanah, is the yearly rent the registered owner of alienated land pays to the State Authority. Section 5 of the National Land Code 1965 defines it, and section 95 makes the registered proprietor, or someone acting for them, responsible for paying it (PDT Hulu Selangor).

It is not the same as cukai taksiran (assessment tax, often called cukai pintu). Assessment tax is charged by the local council under section 127 of the Local Government Act 1976 on each holding in its area, and it is based on the annual value: the reasonable gross yearly rent the holding could be expected to earn if it were let (MBSA, cukai taksiran). A factory owner pays both. Quit rent goes to the state through the land office. Assessment tax goes to the council: MBSA in Shah Alam, Majlis Perbandaran Selayang for Rawang, Majlis Perbandaran Hulu Selangor for Serendah and Batang Kali.

One practical difference matters when you buy a new factory. MBSA lists the issue of a CCC or CF for a new building as one of the reasons an assessment changes (MBSA, pindaan nilaian). Quit rent, on the other hand, follows the land and its category, so it does not jump just because a building is finished.

How much is quit rent for industrial land in Selangor?

MIDA's cost of doing business table lists quit rent on industrial land in Selangor at RM2,700 to RM24,000 per hectare per year (MIDA). Converted to the units factory buyers use:

Lot size	Quit rent at RM2,700 per ha	Quit rent at RM24,000 per ha
1 hectare (about 2.47 acres)	RM2,700 a year	RM24,000 a year
1 acre (0.4047 ha)	about RM1,090 a year	about RM9,710 a year
20,000 sq ft semi-D lot (0.186 ha)	about RM500 a year	about RM4,460 a year

These are my own conversions of the MIDA range, not bills. The wide range reflects district, location and the conditions on each title. Treat the table as a budgeting band and replace it with the real amount on the e-Tanah bill as soon as you have the title number.

For comparison, the same MIDA table shows Johor at RM1,600 to RM2,400 per hectare depending on light, medium or heavy industry, so Selangor sits at the higher end of the Peninsula (MIDA).

If you are pricing the land itself rather than the yearly holding cost, look at registered transactions instead of asking prices: FactoryHub's Rawang and Kundang transaction page and its industrial transactions page list JPPH-registered deals.

Where do I check and pay quit rent for a factory in Rawang, Serendah or Shah Alam?

Every title in Selangor can be checked on e-Tanah Selangor by land title, strata title or account number. Selangor stopped posting quit rent bills from January 2023, so owners download them from the portal from January each year (PDT Petaling). Section 93 of the National Land Code means you still owe the rent even if no bill reaches you (PDT Hulu Selangor).

The counter that handles your title depends on the district shown on the title:

Where the factory is	District land office
Rawang	Pejabat Daerah dan Tanah Gombak
Serendah, Batang Kali, Bukit Beruntung	Pejabat Daerah dan Tanah Hulu Selangor
Shah Alam (most sections)	Pejabat Daerah dan Tanah Petaling

Sungai Choh and Kundang sit near district lines, so read the district and mukim printed on the title rather than going by the postal address. Payment can be made on e-Tanah, through CIMB Clicks or Maybank2u, on the CEPat app, at Pos Malaysia with a current bill, or at the land office counter, where a bank draft or money order must be made out to Bendahari Negeri Selangor (PDT Hulu Selangor).

Flatted factories and some cluster schemes on strata titles pay cukai petak instead. It replaces the quit rent on the master title rather than adding to it, and Selangor started it in June 2018 (PDT Petaling, cukai petak).

What happens if quit rent on a factory is not paid?

The payment window is 1 January to 31 May. From 1 June the land office adds a late fee: RM1 on arrears up to RM10, RM2 up to RM50, RM5 up to RM100, and 7% of the amount payable above RM100 (PDT Hulu Selangor). Almost every industrial bill is above RM100, so the 7% tier is the one that applies.

If arrears are still not cleared, the land office issues a demand notice in Form 6A. If it is not settled within three months of the notice, the State can take action to forfeit the land under section 100 of the National Land Code (PDT Petaling). For a factory buyer the point is simple: the arrears belong to the land, not to the seller, and a title with a live Form 6A is not something to complete on.

What do I check on quit rent before buying a factory or industrial land?

When I prepare a factory or land deal in Rawang, Serendah or Shah Alam, these are the quit rent questions I put on the checklist:

1. Pull the current year's bill on e-Tanah using the title number from the land search, and confirm the amount and that there are no arrears or late fees.
2. Ask for the last three years of receipts. They show whether the owner pays on time, and the land office FAQ notes that once the SPA is signed, paying quit rent becomes the buyer's responsibility (PDT Petaling). Your lawyer will apportion the current year in the SPA.
3. Check the category of land use. If the title still says agriculture and the plan is a factory, a section 124 conversion is needed. The approval notice (Form 7B) asks for the further premium, other charges and the new rent in one payment (National Land Code), so the yearly quit rent after conversion will not be the figure on today's bill. my guide to industrial land title conversion in Serendah and Batang Kali covers that process.
4. For strata factories, ask the JMB or MC whether strata titles have been issued, because that decides who pays the bill (PDT Petaling, cukai petak).
5. Update the correspondence address with Borang 26A after completion so notices reach the new owner (PDT Petaling).

Who pays quit rent when a factory is rented out?

By law it is the registered owner (PDT Hulu Selangor). In a factory tenancy the landlord normally keeps quit rent and assessment tax, and the tenant pays utilities and the costs of running the business. Some long leases on detached factories pass outgoings to the tenant, so read the outgoings clause. If you are comparing units for rent, the factories for rent in Rawang and Shah Alam pages show what is open now, and the yearly holding costs are worth raising before the letter of offer.

For tenure questions that sit next to quit rent, such as the years left on a lease and state consent, see my guide on freehold vs leasehold factories in Shah Alam and Rawang.

If you want help checking the quit rent and title on a factory or industrial lot in Rawang, Serendah or Shah Alam, WhatsApp Jason Low, Probationary Estate Agent PEA 1478 with CID Realtors, on +60 12-288 1834.