Real Property Gains Tax
Real Property Gains
Tax (RPGT) is tax charged by the Inland Revenue Board on gains derived from the disposal of
real property such as land and building. Both individuals and companies are subjected to RPGT.
Since its introduction in 1976,
RPGT had undergone several revision. The
last revision was done in 2014 ( See
table below )
RPGT rates in 2014
RPGT rates are depending on three different entity and the holding period of a particular property as shown below
Exemption
Individual can obtain RPGT exemption base on the following.
>> Disposal of one residential property once in a lifetime.
>> Transfer as gifts in between family members. This exemption is only applicable for transfer in between husband and wife, parent and child, grandparent and grandchild. Take notes that between sibling, brothers or sisters are not applicable.
>> Waiver Exemption equivalent to 10% of chargeable gains or RM10,000 whichever is higher is not taxable
Individual can obtain RPGT exemption base on the following.
>> Disposal of one residential property once in a lifetime.
>> Transfer as gifts in between family members. This exemption is only applicable for transfer in between husband and wife, parent and child, grandparent and grandchild. Take notes that between sibling, brothers or sisters are not applicable.
>> Waiver Exemption equivalent to 10% of chargeable gains or RM10,000 whichever is higher is not taxable
Amount Payable
RPGT Payable = RPGT Rates x (Chargable Gains – Waiver Exemption)
RPGT Payable = RPGT Rates x (Chargable Gains – Waiver Exemption)
Chargeable Gains is the net capital gains after deducting
in between disposal price, acquisition price and allowable expenses (Legal fees,
Sales commission, Administrative fees, Repair and renovation)