Real Property Gains Tax
Malaysia property tax

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 Tax Rates

 Applicable to all disposer

Category of Disposal in numbers of years

Tax Rate

Disposal within two (2) years after the date of acquisition of the chargeable asset

30%

Disposal within third (3) years after the date of acquisition of the chargeable asset

20%

Disposal within forth (4) years after the date of acquisition of the chargeable asset

15%

Disposal within fifth (5) years after the date of acquisition of the chargeable asset

5%

Disposal within sixth (6) years after the date of acquisition of the chargeable asset

nil

  In the case where the disposer is a company, the following Tax rates shall apply

Category of Disposal in numbers of years

Tax Rate

Disposal within two (2) years after the date of acquisition of the chargeable asset

30%

Disposal within third (3) years after the date of acquisition of the chargeable asset

20%

Disposal within forth (4) years after the date of acquisition of the chargeable asset

15%

Disposal within fifth (5) years after the date of acquisition of the chargeable asset

5%

   In the case where of an individual who is not a citizen and not a permanent resident, the following Tax rates shall apply

Category of Disposal in numbers of years

Tax Rate

Disposal within fifth (5) years after the date of acquisition of the chargeable asset

30%

Disposal within sixth (6) years after the date of acquisition of the chargeable asset

5%

    

Real Property Gains
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.
Chargeable Assets
An Act enacted by the Duli Yang Maha Mulia Seri Paduka Baginda Yang di-Pertuan Agong as the Real Property Gain Tax Act 1976. Interpreted chargeable asset as real property gain tax, shall be charged in accordance to this Real Property Gain Tax Act 1976 in respect of chargeable gain accruing on the disposal of any real property. Subject to this Act, the chargeable gain from disposal of real property shall be charged according to the category Tax Rates in Ringgit Malaysia.
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
The following disposal of real property which do not fall under Real Property tax Act 1976 :
  1. Transferring ownership from husband to wife (wives) or vice versa
  2. Inheritance of real property from deceased
  3. Transfer of ownership from an individual to a company where he or she has shares in the company.
  4. Transfer of an asset as collateral for loan.
  5. Compulsory acquisition by Government under any law. (Eminent Domain)
  6. Disposal of assets as charity.

 

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