|
|
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.
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.
Example
to illustrate the calculation of RPGT payable
Ms.R 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). She
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 Ms.R will be RM4,500.
Allowable Loss
Allowable loss means a loss made after the disposal. Tax relief shall be
allowed in respect of the following accrued:
1.If the disposal price is less than the acquisition price.
2.If the disposal price is equal to the acquisition price
Exemption
(under Real
Property Gains Tax (Exemption) Order 2009)
The
flat 5% RPGT for the 1st five years will be implemented through the Real Property Gains Tax
(Exemption) Order 2009. This Order has gazetted and take effective since 1st JAN 2010. Therefore, the
existing rate of RPGT, which is within 30% to 5% as in Schedule 5 of the Real Property Gains Tax
1976, will no longer be applicable.
However, there are three circumstances where the property owner is
exempted from the 5% RGPT.
* 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.
You can
check out at HERE
for more details about RPGT. |
