Do
you know?
Real Property Gain Tax (RPGT) in Malaysia
With effect from 1 January 2010, RPGT of 5% flat will be
applicable on gains on disposal of real properties in Malaysia or
disposal of shares in real property companies within 5 years from
the date of purchase. The scale rates from 5% to 30% depending on
year of possession is no longer applicable.
However, RPGT is exempted or no RPGT is levied for disposal of
real property or shares in real property companies held for more
than 5 years. You are tax free to sell in 6th year onwards.
Some tax exemptions are available for individuals, even though
they are disposed of within the first 5 years from the date of
purchase:-
- Disposal of a residential property once in a lifetime by an individual.
- Transfer as gifts between parent and child, husband and wife, grandparent and grandchild (transfer between sibling/brothers or sisters is not applicable); and
- Exemption of RM10,000 or 10% of the chargeable gain, whichever is greater, for each disposal of a property by an individual. Chargeable gain is generally meaning sale proceeds less purchase cost.
Example:
Sale proceeds 500,000
Less: original purchase cost (300,000)
-----------
Chargeable gain 200,000
LLess: exemption of RM10,000 or 10% (20,000)
------------
Taxable amount 180,000
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RPGT tax payable at 5% 9,000
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