Real Property Gains Tax (RPGT)

Real Property Gains Tax 

Real Property Gains Tax is a form of Capital Gain Tax that is imposed on the disposal of property in Malaysia.  RPGT is govern by the Real Property Gain Tax Act 1976.  The chargeable gain is the profit when your selling price is more than purchase price of the property.

The increment of RPGT will help to subdue speculation and stabilise the property prices in Malaysia.

How RPGT is calculated?

As mentioned above, you will be only be taxed on the capital gain which is disposal price less the purchased price less the miscellaneous charges.

Chargeable Gain = Disposal Price – Purchased Price Net Chargeable Gain = Chargeable gain – Exemption Waiver Tax payable = RPGT rate RPGT Exemptions

RPGT Calculator?

To check the amount of tax that you need to pay, kindly use this RPGT Calculator.

RPGT Exemption

There are few occasion that you can get Real Property Gains Tax  exemptions.  The following Real Property Gains Tax  exemptions which were implemented under the previous regime continue to be available:

  • RPGT exemption on gains from the disposal of one residential property once in a lifetime to individuals;
  • RPGT exemption of up to RM 10,000 or 10% of the net gains, (whichever is higher) from the disposal of real property by individuals; and
  • RPGT exemption on gains arising from the disposal of real property between family members (e.g. husband and wife, parents and children, and grandparents and grandchildren).

RPGT Rates in Malaysia

If you look at Real Property Gains Tax  history in Malaysia, the RPGT rates always change depend on the government policy etc.  Under the recent Budget 2014 announcement, the Malaysian Government has proposed a significant increase to the current RPGT rates to further curb speculative activities in the local real property market. With effect from 1 January 2014, the revised RPGT rates for the disposal of real property and shares in real property companies will be as follows: RPGT_rate The holding period of 3, 4, 5 and 6 years refer to the period between the date  of the acquisition of the property and the date of disposal of such property.  

Where and When do you pay RPGT?

Real Property Gains Tax  should be paid within  60 days after your property been sold off.  You can get your lawyer to help on this and make sure they have submit necessary documents for RPGT purposes.

Real Property Gains Tax details can be viewed at  http://www.hasil.gov.my/

 

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