The gains arising from the disposal of any properties situated in Malaysia or any interest, option or
other right in or over such properties or the disposal of shares in a 'real property company' is subject
to Real Property Gains Tax Act, 1976.
However the Real Property Gains Tax (Exemption) (No. 2) Order 2007 exempts the application of all provisions
of the Real Property Gains Tax Act 1976 with effect from 1st April 2006 and consequentially there is currently
no real property gains tax payable in respect of disposal of any properties situated in Malaysia.
The exemption would apply to all persons (ie. individuals and corporations as well as residents and non-residents)
in respect of disposal of properties after 31st March 2007.
Rates
of Tax
|
CATEGORY OF DISPOSAL
|
COMPANY (%)
|
INDIVIDUALS & OTHER PERSON (%)
|
|
Disposal
within 2 years
|
30
|
30
|
|
Disposal
in the 3 rd year
|
20
|
20
|
|
Disposal
in the 4 th year
|
15
|
15
|
|
Disposal
in the 5 th year
|
5
|
5
|
|
Disposal
in the 6 th year and subsequent years
|
5
|
0
|
The
above rates apply for disposals on or after 27
October 1995.
An
individual who is not a citizen and not a
permanent resident is subject to the
following rates:-
|
CATEGORY OF DISPOSAL
|
RATE OF TAX (%)
|
|
Disposal
within 5 years after the date of
acquisition of the chargeable asset
|
30
|
|
Disposal
in the 6 th and subsequent years after
the date of acquisition
|
5
|
These
rates apply for disposals on or after 17
October, 1997
Exemptions
to RPG
| 1. | An amount of RM5,000 or 10% of the
chargeable gain, whichever is greater, for
each disposal of a property by an individual. |
| 2. | A once in a lifetime exemption on a
gain accruing to an individual who is a citizen or a permanent resident or to a husband and wife in respect of the disposal
of one private residence. |
Sample
of RPG calculation:
|
Disposal
Price on 10.01.2000
|
|
 300,000
|
|
|
Less: Renovation/extension costs
|
20,000
|
|
|
|
Legal fees
|
3,000
|
23,000
|
277,000
|
|
Acquisition
Price on 15.04.1996
|
|
200,000
|
|
|
Add: Duty
stamp paid
|
3,000
|
|
|
|
Legal fees
|
2,500
|
5,500
|
205,500
|
|
|
|
|
71,500
|
|
Less:
Exemption
of RM5,000 or 10% of the chargeable
gain, whichever is greater
|
|
|
7,150
|
|
Chargeable
gain
|
|
|
64,350
|
Tax
on RM64,350 @ 15% = RM9,652.50
Rate
of tax 15% for disposal in the fourth year
after the date of acquisition
** info taken from LHDN website
** For more information visit the website http://www.hasil.org.my
|
