RPGT is a tax imposed on gains from disposal of all types of properties such as residential and commercial buildings, land and shares of real property companies. RPGT is imposed on the net gains from disposal of property after deducting the following costs:-
Acquisition price
Stamp duty
Legal fees
Renovation costs
Commission for sales and administrative
payments
RPGT Tax Exemption
1)
Exemption on gains from the disposal of one residential property once in a
lifetime to individual (Please utilize this once in lifetime opportunity
wisely!)
2) 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)
3)
10% of profits OR RM10,000 per transaction (whichever is higher) is not taxable
RPGT Rate
Accordance
with the Budget 2014 announcement, the rates for RPGT has been increased.
Government’s reason for the hike is mainly to reduce speculative activities on
housing prices and real estate market.
Government
believes that hiking up RPGT enable the Rakyat to purchase affordable new
houses. However in long term, hike in RPGT rates will slow down the sales of
the secondary markets (sub-sales) and also might reduce property investments by
local and foreign property investors.
The current RPGT rates vary from 0% to 30%, depending on the
holding period. The holding period refers to the period between the acquisition
date and the disposal date of the property.
To further curb speculative activities, the RPGT rates on
disposal of properties and shares in real property companies effective 1
January 2014 shall be as follows:-
