Real Property Gain Tax (RPGT) in Malaysia

property tax













 

 

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 The scale rates from 5% to 30% depending on year of possession is no longer applicable.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:-

 

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

                                                                      =======

RPGT tax payable at 5%                                 9,000

 

 

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