Does it will affect anything? Let discuss.
will we get lowest gain after that?

I think it will affect things. Tax is not good. It's a shame. Every time something good happens in Malaysia, the government decides to put it to an end. Let the property market grow. Let investors make money. At the end of the day it's the country that benefits.

I think the decision to introduce this tax was completely crazy. It will hurt foreign investment, as now everyone is expecting the tax will only go up.

Does anyone know how the tax is calculated? Is the exemption of RM10,000 or 10% of the gains (whichever if greater) available to each owner if the property is jointly owned by two persons?

I don't there are any exemptions except the costs of the property like interest for period you didn't rent the property, if you improved the property, etc...

As of 01st January 2010, the 5% RPGT tax will apply to disposal of properties below 5 years from the date of its purchase.

As informed, disposal of property more than 5 years, no RPGT tax will be incurred.

Also, there are new forms to be used. No longer the old CKHT forms.

Therefore, for disposal of property more than 5 years form the date of its purchase, one is entitled to RPGT tax exemption for purchase of one housing accomodation only. Just submit the new forms for RPGT tax exemption. The new forms can be obtained from LHDN.

As of 01st January 2010, the 5% RPGT tax will apply to disposal of property below 5 years from the date of its purchase.

As informed, for disposal of property more than 5 years, one is entitled to seek RPGT tax exemption.

There are new forms. No longer the old CKHT forms. This can be obtained from LHDN.

RPGT tax will apply at disposal of property.

raymond, not one time exemption. my lawyer tell me that you can sell many properties after 5 years and no tax. not only one.

However, don't think the Real Property Gains Tax Act 1976 do grant such exemptions in provisions
which your lawyer would have advised you. Do note the exemption is a singular word NOT in plural word.

That is what I have received from LHDN. So the exemption in singular means one event at one time.
Not exemptions in plural.


Guess you should get the hardcopy of the law to verify this.

Hi all,

Can somebody explain to me for the below;

1- What is the RPGT means?
2- Is that the tax imposed to the buyer that effected the property price?
3- What are the exemption? Is the exemption is related to the individual tax from LHDN?

I've read the news related;
http://thinkproperty.com.my/realestate/ThinkBlog/5-cap-for-real-property-gains-tax.html

Thanks.

1. According to s.3 RPGT Act 1976, " A tax , to be called real property gains tax, shall be charged in accordance with this Act in respect of chargeable gain accruing on the disposal of any real property (hereinafter referred to as "chargeable asset").

2. Section 7 RPGT Act 1976 states chargeable gains, allowable losses and tax relief for allowable losses.
The forms give option to both vendor or purchaser to submit for RPGT tax.

3. Section 9 RPGT Acr provides for exemptions specified in Schedule 4.
However, as of recently, the Bar Council do published an article entitled " Real Property Gains Tax in
making a comeback in 2010" in their website.

Five (5) points were listed :-
" Flat rate of 5% gains tax across the board "
" Minimum exemption of RM10,000 gain "
" Retention sum of 2% of the purchase price "
" 60 days to submit CKHT forms "
" To remit retention sum to IRB within 60 days "

Section 8 RPGT Act 1976 provides for private residence.
According to section 8 RPGT Act 1976, " Subject to Schedule 3, a gain shall be exempted from the tax if it accrues to an individual who is a citizen or an individual who is not a citizen but is a permanent resident in respect of the disposal by him of his private residence."

Seems to indicate, RPGT has no relation to income tax.