Guides
Accommodation Provided by Employer: Value of Living Accommodation (NTK) & Tax
Updated: 8 November 2026 Independently fact-checked.
Introduction
If your employer provides a house, apartment or other accommodation for you to live in — free or at low rent — the value of that accommodation may be counted as part of your gross employment income and taxed. This value is known as the Value of Living Accommodation (NTK).
This article explains the legal basis under the Income Tax Act 1967 (ACP 1967): s.13(1)(b) for benefits in kind (MBB), s.13(1)(c) for accommodation, and s.32 for how the amount is determined. It does not cover cash housing allowances (which are treated under s.13(1)(a) — different treatment).
Legal basis
Gross employment income includes (s.13(1)(b) ACP) an amount equal to the value of the use/enjoyment of benefits/amenities that cannot be converted into money (MBB) — with certain exceptions:
- Medical/dental/childcare benefits;
- Leave passages: within Malaysia ≤3 times a year (including meals & accommodation); or 1 passage abroad up to a maximum of RM3,000 (restricted to the employee & immediate family);
- Benefits used wholly in the performance of duties;
- Benefits under paragraph (c) (accommodation — see below).
Source: ACP 1967, s.13(1)(b) (R1).
Value of Living Accommodation (NTK) — s.13(1)(c) & s.32
Gross income also includes (s.13(1)(c)) an amount relating to the use/ enjoyment of accommodation in Malaysia (including accommodation in premises occupied by the employer) provided free of charge or otherwise.
How the amount is determined (s.32(2) ACP):
| Accommodation circumstances | Amount |
|---|---|
| General (other premises) | "defined value" OR 30% of gross employment income under s.13(1)(a) (with s.25/28) — whichever is lower |
| Hotel, hostel, similar premises; plantation/forest; or premises in a rated area not subject to property tax | 3% of gross income under s.13(1)(a) |
| Director of a controlled company (s.32(3)(a)) | "defined value" (or a reasonable portion if shared with other employees) |
Important — do not generalise 30% alone. The actual formula is "defined value" or 30%, whichever is lower; and the hotel/hostel/plantation/forest/ unrated category uses 3%.
Additional rules (s.32(3)):
- If only part of the period — proportionate reduction;
- If shared / required to occupy / larger needed for hospitality — "defined value" or 30%, whichever is lower;
- The basis of calculation excludes any amount relating to the right to acquire shares (ESOS) — s.32(4).
Source: ACP 1967, s.32(2)–(4) (R1).
What is "defined value"?
Definition of "defined value" (s.2 ACP):
- (a) If the premises are leased and not subject to rent control laws → the rent that would be payable if unfurnished and between independent parties;
- (b) Otherwise → rateable value, or if there is none, economic rent.
Source: ACP 1967, s.2 (R1).
HASiL administrative sources
HASiL issues administrative guidance for these calculations:
- Form B Explanatory Notes YA 2025 refer to Public Ruling No. 3/2005 (Original & Amended) for NTK (Worksheet HK-2.5/Appendix B4) and Public Ruling No. 11/2019 for MBB (HK-2.4/Appendix B3).
- HASiL training materials T2025 (EA/E) list NTK value categories consistent with s.32: first category (hotel/hostel/plantation/forest/ unrated) 3%; second category (other premises) 30% or the specified value, whichever is lower; third category (director of a controlled company) the specified value of the premises.
Source: HASiL — Form B Explanatory Notes YA 2025; T2025 materials (R2, R3).
this item still awaits official confirmation from HASiL — check again with HASiL before deciding. notes from research
Simple examples
Example 1: Puan Mina receives gross employment income (s.13(1)(a)) of RM60,000 a year. Her employer provides an ordinary residential house (not hotel/hostel/plantation). The rent that would be payable between independent parties (defined value) is RM9,000 a year.
- 30% × RM60,000 = RM18,000;
- Defined value = RM9,000;
- NTK = RM9,000 (whichever is lower).
Example 2: Encik Lim lives in a hostel provided by his employer in a factory area. Gross income under s.13(1)(a) is RM48,000 a year.
- Hostel category → 3% × RM48,000 = RM1,440 a year.
(These examples are for illustration only — fact-check must confirm figures through official sources.)
Frequently Asked Questions (FAQ)
Q. I live in my employer's house without paying rent. Am I taxed? A. Yes — the value of the accommodation (NTK) is included in gross employment income under s.13(1)(c) and calculated under s.32 (defined value or 30%, whichever is lower; 3% for the hotel/hostel/plantation/forest/unrated category).
Q. What is the difference between a cash housing allowance and accommodation provided by the employer? A. A cash housing allowance is treated under s.13(1)(a) (perquisite — different treatment). Accommodation provided by the employer is treated under s.13(1)(c)/s.32 (NTK). Do not confuse the two.
Q. I am a director of a controlled company and live in a company house. How is its value calculated? A. Under s.32(3)(a), the amount = "defined value" (or a reasonable portion if shared); if only part of the period, a proportionate reduction. Verify your circumstances with HASiL or a tax adviser.
Q. Does this value need to be reported in Form EA? A. The value of MBB (including NTK) is reported by the employer in the Statement of Remuneration from Employment (Form EA/EC). Verify reporting details with official HASiL sources.
Glossary
- MBB — benefits in kind; benefits that cannot be converted into money.
- NTK — Nilai Tempat Kediaman (value of living accommodation).
- Defined value — value determined under s.2 ACP (independent-party rent / rateable value / economic rent).
- Rateable value — the value used by the relevant authority for property tax.
- ACP 1967 — Income Tax Act 1967.
- YA — Year of Assessment.
Official sources
All sources below were reviewed on 8 November 2026. Official HASiL pages and documents: