Proceedings of Postgraduate Conference on Global Green Issues (Go Green),UiTM (Perak), Malaysia, 7-8 October 2015 221 Role of Real Estate Valuation Surveyors in the Malaysian National Taxation Mohd Hasrol Haffiz Bin Aliasak 1 , Mohd Farid Bin Sa’ad 2 1,2 Department of Estate Management, Faculty of Architecture, Planning and Surveying, Universiti Teknologi Mara (Perak), 32610, Seri Iskandar, Perak Darul Ridzuan Email: haffiz677@perak.uitm.edu.my Abstract This paper discussed involvement and role of Valuation Surveyors or Real Estate Valuers in the process of determination of real estate values for national taxation purposes. Valuation Surveyors either in public or private sectors have their own role and functions. Besides that, the position of Valuation Surveyors whether in public or private sectors depends on who instructed them to carry out a valuation exercise. Analysis and evaluation on secondary data were acquired from previous studies, publications, reports and other related journals. The authors also make necessary analysis and evaluation through the provisions as stated in the written laws in Malaysia such as Stamp Act 1949, Real Property Gain Tax Act 1976, Local Government Act 1976, National Land Code 1965 and Income Tax Act 1967. Therefore, the relevant laws and regulation have clearly stated the requirement of valuation surveyors in order to assist the relevant authorities to determine the capital value of chargeable assets (mainly in the form of real estate) before the duties and charges determined by the agencies such as the Inland Revenue Board, Land Offices and local authorities. At the end of this paper, the authors will summarize the types of taxes valuation that require the Valuation Surveyors to determine capital value or rental value. Keywords: Valuation Surveyors and Taxations 1.0 Introduction The Valuation Surveyors also known as the Real Estate Valuers is one of the professional members recognized in Malaysia. Role and functions and also its expertise belongings to the valuation surveyors as stated in the Malaysian written law currently enforced. The valuation surveyors provide the services in term of property values and professional advice on real estate valuation of land, buildings, plants and machineries, and also the valuation of business in Malaysia. A statutory body which was established under the Valuers, Appraisers and Estate Agents Act 1981 giving the powers and authorities to the body known as the Board of Valuers, Appraisers and Estate Agents to implement and execute their powers as stated in the the Act 242. The existence of valuation surveyors can be trace back since the Malacca Malay Sultanate era in 14 th century where the position of Penghulu (Chieftain) and Penghulu Bendahari (Ancient position of the Ministry of Finance) play their role as appointed officers by the Malay Native Ruler (Sultan) to collect the revenue from the people who were living in the empire and colonies. However, the modern position of the valuation surveyor was introduced by the British after their occupation on Penang Island and Seberang Perai Colonies in 1790’s from the Sultan of Kedah. The first valuation unit established by the British East Indies Company (EIC) in Penang executes their function to determine the annual value of property holding located within the George Town Administrative Area managed by the Sanitary Board which was formed by the EIC (Mohd Hasrol Haffiz dan Mohd Farid, 2011). In the national taxation context, the role and functions of valuation surveyor looks very significant in order to contribute the national public revenues. The valuation surveyor who was appointed is responsible to assess and value the assets (fixed and/or current) for specified purposes. In addition, the Malaysian taxation is classified into two main types known as the Direct and Indirect taxes. However, the involvement of valuation surveyor in the Malaysian taxation preferred to the valuation processes to determine amount of real property to be taxed such as for the purposes of Rating Assessment, Real Property Gain Tax, Stamp Duty and Income Tax. The basis of valuation based on the Capital Value and Rental Value subjected to the types of tax will be charged by the relevant authorities. 2.0 Definition of Valuation Surveyor/Real Estate Valuer The valuation surveyor is one of the professional members who are expertise in determine the value of real property either in term of capital value of rental value for specified purposes (Marcinskas & Galiniene, 2005 and Emirzon et. al., 2005). The valuation is also the main character or player and gives professional advice to the authorities, publics and organizations in development of national economy (Marcinskas et. al., 2005 and Hoyt,