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Real Property Gains Tax (RPGT)
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The Real Property Gains Tax Act 1976 (RPGTA) has
not been abolished but exempted with effect from 1 April 2007. In
the Budget 2010, Government has re-imposed the Real Property Gains
Tax (RPGT). The RPGT will be fixed at 5% on the gains from the
disposal of real property with effective from 1 January 2010. The
RPGT for the first year is 5% and it’s same for second, third,
fourth and fifth year.
Therefore, all disposals occurring
from Jan 1, 2010 will not exempted from the property gains tax and
they are required to file the forms referred to as CKHT 1 and 2 for
any sale and purchase of property.
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Real Property Gains
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Real Property
Gains are gains derived from disposal, sell, convey, assign,
transfer, settle or alienate whether by agreement or by force
of law which fall under chargeable asset. All chargeable
assets must be made during the year of assessment and all
particulars must be furnished as requested.
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Example to illustrate the calculation of RPGT payable
Mr.A purchased a property on year 2006 at RM100,000 and sold after
or on 1st JAN 2010 at RM200,000 (within five years of the date of
purchase). He made RM100,000 from the transaction and the gains are
subject to 5% RPGT and the calculation will be:
RM100,000 (Property Gains) – RM10,000 (Waived Exemption) = RM90,000
(Taxable Gains)
RM90,000 (Taxable Gains) x 5% (RPGT Rate) = RM4,500 (RPGT
Chargeable)
Thus, the RPGT chargeable to Mr.A will be RM4,500.
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Chargeable Assets
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An Act enacted
by the Duli Yang Maha Mulia Seri Paduka Baginda Yang
di-Pertuan Agong as the Real Property Gain Tax Act 1976.
Interpreted chargeable asset as real property gain tax, shall
be charged in accordance to this Real Property Gain Tax Act
1976 in respect of chargeable gain accruing on the disposal of
any real property. Subject to this Act, the chargeable gain
from disposal of real property shall be charged according to
the category Tax Rates in Ringgit Malaysia. |
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Allowable Loss
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Allowable loss means a loss made after the disposal. Tax relief
shall be allowed in respect of the following accrued:
- If the disposal price is less
than the acquisition price.
- If the disposal price is equal
to the acquisition price
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RPGT
Exemption |
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The following disposal of real property which fall under Real
Property Tax Act (Exemption) Order 2009:
* The level of
exemption is increased from RM5,000 to RM10,000 or 10% of the
chargeable gains, which ever is the higher
* Gifts between parent and child, husband and wife, grandparent and
grandchild; and
* disposal of a residential property once in a lifetime.
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