REAL PROPERTY GAIN TAX (RPGT)
RPGT and exemption:-
i. Malaysian citizens or permanent residents are allowed a once-in-a-lifetime exemption on any chargeable gain from the disposal of a private residence. The RPGT Act defines a private residence as a building or part of a building owned by an individual or occupied as a place of residence.
ii. An individual will be given an exemption equal to RM10,000 or 10% of the chargeable gain, whichever is greater.
iii. There’s an exemption on gains when a property is transferred within the family, either between husband and wife, parent and child, or even grandparents.
*Budget 2020 introduced an interesting new change to RPGT by shifting the ‘base year’ which RPGT is assessed against from 1 January 2000 to 1 January 2013.
*Real Property Gains Tax (Exemption) Order 2020 (“Exemption Order”)
Under the Exemption Order, gains arising from disposal of residential properties after 1 June 2020 until 31 December 2021 will be exempted from Real Property Gains Tax (“RPGT”). Such exemption is granted for up to three residential properties per individual if the following conditions are fulfilled:
1. the disposer must be an individual who is a Malaysian citizen and is the sole or joint owner of the property to be disposed;
2. the property disposed must be a ‘residential property’, namely a house, a condominium unit, an apartment or flat in Malaysia, and includes a service apartment and a small office home office (SOHO) which is used only as a dwelling house;
3. the residential property which is being disposed of is not acquired by way of:
- transfer between spouses; or
gift between spouses, parent and child, or grandparent and grandchild where the donor is a citizen; and
4. the SPA for the disposal of the residential property is executed on or after 1 June 2020 but not later than 31 December 2021 and is duly stamped not later than 31 January 2022. Where there is no SPA, the instrument of transfer for the disposal of the residential property is executed on or after 1 June 2020 but not later than 31 December 2021, and is duly stamped not later than 31 January 2022.
Disclaimer:-
No warranty or representation, express or implied is made as to the accuracy of the information contained/attached herein. Neither the firm nor any of its staff is responsible or liable for any claims, losses, damages, cost or expenses arising in any way out of or in connection with any person relying upon the above information. Viewing are advised to verify all facts with the relevant parties and authority concerned.