Real Property Gains Tax (RPGT)

Posted on: 2014-02-21

Owning a comfortable home are top on the most wish list from the people, this largely due to the constant increased house prices for past few years. Price of most houses in the cities has been double or treble since then.


Year

2012

Increment

2013

Increment

2014

Disposal in 1st year

10%

5%

15%

15%

30%

Disposal in 2nd year

10%

5%

15%

15%

30%

Disposal in 3rd year

5%

5%

10%

20%

30%

Disposal in 4th year

5%

5%

10%

10%

20%

Disposal in 5th year

5%

5%

10%

5%

15%

Disposal in 6th year and beyond

0%

-

0%

-

0%




What is RPGT?
RPGT is a form of tax levied by the Lembaga Hasil Dalam Negeri Malaysia (LHDN) on capital gains derived from the disposal of properties.

RPGT is governed by the Real Property Gains Tax Act 1976 (Act). The Act was enacted to provide for the imposition, assessment and collection of a tax on gains derived from the disposal of real property. "Real property" is defined in the Act as any land situated in Malaysia and any interest, option or right in or over such land.

Section 3 of the Act further provides that RPGT shall be charged in respect of chargeable gain accruing on the disposal of any real property. A "chargeable gain" exists where the disposal price of the property exceeds the acquisition price of that property.

RPGT also applies in an acquisition and disposal of shares in a real property company (RPC). An RPC is a company which acquires real property or shares or both, where the value of such property or shares is more than 75% of the value of the RPC's total tangible assets.


Share:

Source From: http://savemoney.my/real-property-gains-tax-in-malaysia/

Other News & Articles


How good is property as an asset class today?

The next question then is, how viable are properties as an asset class amid the slew of negative news flow today....

Posted on: 2018-10-17

Spike in property launches priced at RM500,000 and below

Despite the contraction in the number of housing units launched, properties within the price segment of RM500,000 and below experienced ...

Posted on: 2018-10-17

Making rundown property buy worthwhile

A double-storey house or a semi-detached home priced below RM1 million hardly exists anymore in Kuala Lumpur or Petaling Jaya, unless if you are looking at buying a rundown one....

Posted on: 2018-10-04