RPGT & 2014 Rulling On It

Real Property Gains Tax (RPGT) is a tax imposed on gains from disposal of any types of properties such as residential and commercial buildings, land and etc. RPGT is imposed on the net gains from the disposal. Net gains means profit after deducting the following costs:-

1. Acquisition price
2. Stamp duty
3. Legal fees
4. Renovation costs
5. Commission for sales and administrative payments

For Malaysian citizens and permanent residents, RPGT is exempted(once in their lifetime) for the disposal of one residential property.

Also, RPGT is not imposed on gains from disposal of property between:-

• Husband and wife
• Parents and children
• Grandparents and grandchildren

The current RPGT rates  depending on the holding period, vary from 0% to 30%. The holding period refers to the period between the acquisition date and the disposal date of the property.

The RPGT rates on disposal of properties and shares in real property companies effective 1 January 2014 shall be as follows:-