Under Budget 2012, it was proposed that a real property gain tax (RPGT) will be revised to the following:
Disposed within 2 years, RPGT = 10%
Disposed after 2 & up to 5 years , RPGT = 5%
Disposed after 5 years, RPGT = 0%
Revision in Budget 2013:
It was announced in BUDGET 2013 that the RPGT Rates had been revised to as follows:
Properties held and disposed within 2 years, RPGT = 15%
Properties held and disposed after 2 & up to 5 years, RPGT = 10%
Properties held and disposed after 5years, RPGT = 0%
Please visit here for more details: Budget 2013: Higher Real Property Gains Tax (RPGT) Rates
The previous RPGT is 5% for all properties sold within 5 years from the date of purchase.
The Government is delivering a message to Public for preventing an asset (properties) bubble and cooling off the property market. The rates of increase were generally acceptable to most consultants & industry players as the rate increased was considered moderate.
The investors are indeed advised to look into Bank Negara’s policy on liquidity and ease of getting housing loans.
The revised Real Property Gains Tax (RPGT) has hardly affected those who have bought into new properties directly from the developers.
The buyers are only able to sell their properties once the construction is completed, normally 2-3 years are already gone, thus making the effect minimal.