REAL PROPERTY GAIN TAX

Real Property Gain Tax Calculation

During Budget 2013 announcement, effective from 1st Jan 2013, the Real Property Gain Tax (RPGT) will be 15% for any property disposed within two (2) years of purchase. For properties disposed within a period exceeding two year but not more than five years of purchased, the RPGT is 10%, while properties purchased and disposed after five years are not subject to any RPGT.

Real Property Chargeable 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 to the Inland Revenue Board of Malaysia as requested.

REAL PROPERTY GAIN TAX
	Disposal on or after 27 Oct 1995 to 31 Mar 2007	1 Apr 2007 to 31 Dec 2009 (Tax Exemption Period)	Effective 1 Jan 2010	Effective 1 Jan 2012	Effective 1 Jan 2013
Disposal in 1st year	30%	0%	5%	10%	15%
Disposal in 2nd year	30%	0%	5%	10%	15%
Disposal in 3rd year	20%	0%	5%	5%	10%
Disposal in 4th year	15%	0%	5%	5%	10%
Disposal in 5th year	5%	0%	5%	5%	10%
Disposal in 6th year and above	0%	0%	0%	0%	0%

Exemption from RPGT

Three circumstances where the property seller is exempted from paying RGPT.

1. The level of exemption were increased from RM5,000 to RM10,000 or 10% of the chargeable gains, whichever is higher
2. Gifts between parent and children, husband and wife, grandparent and grandchild; and
3. Disposal of a residential property once in a lifetime.

For more updated info, please refer to LHDN website at http://www.hasil.gov.my/‎. Thank you.