Malaysia Budget 2014,Real Property Gain Tax (RPGT) 26 October 2013

Budget 2014: 30% RPGT for first 3 years

Owning a comfortable home are top on the most wish list from the people, this largely due to the constant increased house prices for past few years.

Price of most houses in the cities has been double or treble since then.

As part of the effort in reducing the speculative activities in the property market, it was proposed under Budget 2014 that the real property gains tax (RPGT) will be revised as table below:

REAL PROPERTY GAINS TAX FOR 2014Tax Rates
 Personal (citizen & PR)Company
Disposed within 3 years30%30%
Disposed in 4th year20%20%
Disposed in 5th year15%15%
Disposed after 5 years0%5%

For non-citizen, disposal within 5 years is subject to a flat RPGT of 30%. Disposal after 5 years, RPGT is at 5%.

The RPGT rates increase is applicable to disposal of property taking place on or after 1 January 2014.


Property disposed off during the year 2013 will be subject to the RPGT rates as shown at table below:

REAL PROPERTY GAINS TAX FOR 2013Tax Rates
 Personal (citizen, PR & non-citizen)Company
Disposed within 2 years15%15%
Disposed after 2 & up to 5 years10%10%
Disposed after 5 years0%0%

.


Following are the full speech text extracted from the Budget Speech:

Increasing Home Ownership

187. I hear the grouses of the rakyat who wish to own a comfortable home, especially from those in the low and medium- income groups. Various concerns have often been raised, such as soaring house prices, inadequate supply of houses and difficulties in getting financing.

188. The recent sharp increase in the prices of houses has affected the ability of the rakyat to purchase houses. In addition, speculative activities have an impact on house prices and can adversely affect the real estate market in the long term.

189. To increase the ability of the rakyat to buy a house and ensure stable house prices, as well as to control excessive speculative activities, the Government will implement the following steps :

First: Review Real Property Gains Tax (RPGT). For gains on properties disposed within the holding period of up to three years, RPGT rate is increased to 30%, whereas for disposals within the holding period up to four and five years, the rates are increased to 20% and 15%, respectively. For disposals made in the sixth and subsequent years, no RPGT is imposed on citizens, whereas companies are taxed at 5%.

For non-citizens, RPGT is imposed at 30% on the gains from properties disposed within the holding period of up to 5 years and for disposals in the sixth and subsequent years, RPGT is imposed at 5%.

Second: Increase the minimum price of property that can be purchased by foreigners from RM500,000 to RM1,000,000;

Third: Increase transparency in property sales price, where property developers will have to display detailed sales price including all benefits and incentives offered to buyers such as exemption of legal fees, stamp duty, sales agreements, cash rebates and free gifts; and

Fourth: Prohibit developers from implementing projects that have features of Developer Interest Bearing Scheme (DIBS), to prevent developers from incorporating interest rates on loans in house prices during the construction period. Therefore, financial institutions are prohibited from providing final funding for projects involved in the DIBS scheme.

Author:
Mr. Tony Ng B.C. is Founder and Managing Partner of NBC Professional Group.
Tony Ng BC has written 86 articles for NBC Blog.

141 Comments

  • My cousins and 1 (3 of us) bought a property in 2011. Can we dispose this property next year when ready and claim exemption under the once a life free RPGT tax option? Individually, we have never claimed. Individually, each of us own other properties. Thanks lots.

    • Hi Swee, Every individual will entitle to claim the once in a lifetime exemption for RPGT.

      However, you will need to consider whether it is wise to claim it if the amount is not material.

      Say for an example, a person has just entered agreement to sale his apartment & made profit of RM30,000, the RPGT is 10% (RM3,000).

      But he knows he is going to sale another Condo soon with estimated profit of RM150,000 2 months later.

      That person can choose not to claim when he sold his apartment but opt to claim when he sold his condo (where bigger profit is projected).

      Think it twice before making any decision.

      Good luck to you, Swee.

  • Hi Angelina,

    Both my wife and myself have never sold any house before. We ‘joint namely’ bought a house in June 2007, but i transferred my portion to her in Aug 2012. Now if she sells the property but doesn’t want to claim for the once in a lifetime RPGT exemption, does she still need to pay any RPGT when she obtained 50% of the house in 2007 (which has exceeded 5 years) while the other 50% she got it from husband transfer to wife? Kindly advise.

    Thanks

    Chong

    • Hi Chong, her 50% portion will be tax free.

      The 50% portion that transferred to her would be considered as acquisition at the market value on Aug 2012 (no gain no loss transaction).

      That new 50% portion will subject to RPGT.

  • Nicholas Ang

    With the Budget 2014 has been revealed, i wish to know whether does an individual still entitle to claim the once in a lifetime exemption for RPGT?

    I bought a property and sign the S&P on June 2012. I wish to sell and be exempted from RPGT. I am entitle for such claim? If yes, how much I am entitle for Exemption? Full exemption (30%) of there are only certain percentage of exemption?

  • Nicholas Ang

    Hi Angelina,
    First and foremost, Thank you for speedy reply.
    I apologise for my ignorance as this is my first time selling my property and I wish to confirm that I am fully exempted from the 30% RPGT?

    If yes, will it affect my income tax?

    Are there any supporting documents or other requirements needed for the claim of RPGT exemption?

    • Hi Nicholas, yes, if this is your first time selling residential property, then you can opt to claim the full exemption.

      You will just need to notify your lawyer to claim the full exemption when submitting the RGPT form. No other document is required.

      It will not affect your income tax as it is not relevant. All you need to just check the column in your form BE that you did dispose a property during the year, that’s!

      Enjoy & good luck to you, Nicholas!

  • Hi Angelina,
    My dad had pass away on Y2011 and i had inherited the house through the will. If i sell the house now would i get RGPT exemption? Hope you can help me.

    • Edwin, you need to choose whether to claim for the exemption (if you have not claimed before). If you think it is wise to claim, then go for it. If not, leave it next time.

  • Dear Angelina

    You blog is interesting and knowledgeable on RPGT issues.
    May I know if you do provide RPGT consultation with a fee?
    I used to buy and sell properties on a part time basis and would be grateful if you can help me to do some RPGT computation.

    Appreciate your reply and advise.

    ks yoo

    • Thank you for your interest, Yoo.

      However, we are currently unable to provide RPGT consultation or submission services as this is not our core business.

      The computation of RPGT is quite straight forward and you may get advices from the lawyer at time they fill up the RPGT form for you. (Small note: most of tax agent do not provide RPGT submission due to small markat scale.)

      Good luck & all the best to you!

  • i bought a bungalow lot in nov 2012. I manage to sell it with some profit on dec 2013, how much rpgt i should pay? 15% or 30%? Pls advise. Tq.

    • Hi Baybeh, you are selling your property after holding for less than 2 years & sold it at 2013, so 2013 rate of 15% shall apply.

  • Wilson Chang

    Dear Angelina,

    If I purchase my property in year 2012 and sell it in the year of 2014. Will the gain realised be subject to RPGT scale of 2012 or 2014?

    Thank you.

  • I think there is an error in your rate of RPGT in 2013 for disposal by company from 6th year onwards. Shouldn’t it be 0% instead of 5%?

    • Thank you very much for pointing out the errors, Victor, you are right and it has been amended.

      Our RPGT rates in our previous article “http://www.nbc.com.my/blog/budget-2013-higher-real-property-gain-tax-rates/” was correct.

  • Whats the recent transaction at 21taman melaka raya and rental price for a 3 story shop office in that area thanks

  • Dear Angelina,

    Let’s say my wife and I each have our own property (under her name and my name respectively) and we both want to sell those 2 properties and being our first time selling property. Would both sales qualify for the full RPGT exemption as first time sales?

    What if the second property is jointly-owned under my name and my wife?

    Tq for your kind clarification.

    • Hi Kamarul, joint exemption shall apply for marriage couple. Thus, only one property is subject to full exemption on any occasion (even though the proprety is solely held by you or your wife.)

  • Khairudin Ya'cob

    What about land? If i inherit a land with my siblings when my mother died early of the year can i claimed exemption from RPGT under once in a lifetime to individuals?

    • Hi Khairudin, you can’t claim exemption for the land. The exemption is only applicable to residential properties.

  • Hi im goin to sell of my house where its 4 years old,,,so how much is the goverment tax and from where the will deducte,,,,its from the selling price or profit,,,

    • Hi Palan, it is at its 4th year, if you sale it now before end of 2013, your tax will be 10% on the profit.

      If you sale it next year, your tax will be 15% on the profit.

  • Hi. Is the “once in a lifetime RPGT exemption” applicable to commercial property as well?

  • I bought a house on 3 May 2010. Do I escape from the RGPT when I sell my house on 4 May 2015 or 4 May 2016?
    The “after 5 years” is confusing to me. Will 5 years and 11 months still considered within 5 years?
    Thanks.

  • Hi,
    year 2000 my brother bought a house in Malaysia. But, last year, he migrated to Singapore.

    May I know if he transfer his property to my name, will he need to pay for RPGT? Because, I saw the Budget 2014 the foreigner sale the property after 5 years still need to pay for 5% RPGT.

    Beside that, may I know when is the effective date for the new RPGT? is there have any cooling period?

    Thank you very much.

    • Hi Johnny, your brother migrated to Singapore, so I assume you & your brother are Malaysian, So NO RPGT.

      The 2014 rates will apply for those properties transacted in 2014, where the S&P date is concerned.

  • Joseph Tan

    In the rpgt statement, it mention disposal in the 6th year and subsequent year, is it means disposal after 5 years or 6years?

  • My husband & i bought the property 3 years ago, we were both Malaysian.Now after 3 years, I’d changed my citizenship, no longer a malaysian, but my husband is still a Malaysian. We want to sell the property, whats the category- citizen or non-citizen RPGT, and how many % if i m goin to sell it in year 2014( sell at year 4th). Thanks

    • Mrs Ong, I have amended the table to inclue the non-citizen rates. You may refer to the tables shown above.

      Thank you for your inquiry to make the info complete.

  • My husband and I bought the property 3 years ago, we were both Malaysian by then. Now, after 3 years, I’d renounced my citizenship no longer a Malaysian, and we want to sell the property. What is the category that we will fall, is it citizen or non citizen RPGT? how many % it will be if I am going to sell it in year 2014 ( the 4th years since I purchased). thanks

  • choo kah mun

    the date of RPGT take effective is base on SPA date or state consent date? Say a seller sold his leasehold property on 30 December 2013, within two years, and the state consent approve on next year 2014. So the seller will need to pay 30% or 10%? thanks!

  • Hi Angelina,
    I bought my property in 2010, and sold it few weeks ago (sign S&P) in Oct2013, but it has to go through the settlement process and will likely go beyond early Jan2014. My RPGT would be 10 or 30%? Thanks.

    • Hi PMon, the calculation of RPGT is based on the period between 2 S&P dates (buy & sale), not the completion date of agreement.

      RPGT rates of year 2013 should apply.

  • Angelina,
    I have inherited a house from my father’s will. If i plan to sell the house within 1 year, would like get tax 30% because there was no capital baseline for this house as this house was bought way back like 30 years ago.
    If government tax, will they tax 30% of the whole house value since there was no historical baseline value(No S&P) too.

    • No Edwin, you are deemed to have bought the house at market value as of the date of inheriting the house from your late father.

      If the house was valued at RM1,000,000 then, and you dispose it now at RM1,050,000, you will have real property gain of RM50,000 only. 30% tax rate will apply on RM50,000 gain.

  • I buy a property on year 2008 & refinance on year 2012. If now I want to sell the property. Will I been charge for the tax? The tax is based on the s&p date or the refinance date? Thx

  • Hi Angelina , just to confirm if I purchased property S&P signed end Apr2010 . If I intend to sell it now , it’s 3 years and 8 months . Will it fall under the 4th year RPGT which is 20% on profit ? Just to be sure how they determine ” 4th year” , should it be exactly to be on the anniversary date in 2014 Keene apr 2014? Thanks in advance

  • Hi Angeline, I would like to check. my company is a investment holding companies and bought a ready building and renovated with intention to rented out. But subsequently there are good buyer and decided to sell it off. the holding period less than 2 years. my question is will IRB challenge the disposal under income tax for short term gain. Can I claim term loan interest as part of the expenses for RPGT?

    • Hi Annjoe, if you receive rental income, then definitely you will subject to income tax.

      If you dispose off the property without receiving any rental payment from any tenant (even though you wanted to rent it out, but fail), then RPGT is applicable.

      It is very clear cut, nothing for IRB to challenge.

      In your situation, No, you can’t claim loan interest as part of cost for building.

  • It is interesting to read your blog on subject of RPGT. I shall appreciate it if you could enlighten me….. I am a foreigner married to a Malaysian. Last November 2013 my husband transferred his land (international land)to me for free as he is very old and in bad of health.My cost of acquiring the land from him was paying the stamp duty of Rm2640.00 basing on government’s market valuation of Rm182,000.00.
    I need to sell the land as soon possible and that will be in January 2014. I wonder if I have to pay any RPGT? Your advise is appreciated and thank you in advance.

    • Hi Puspita, the property was deemed transacted at market value as of November 2013. If you want sell it in January 2014, I believe there will be not much increase in price during these few months, thus making not much tax.

  • Hi, Can i know if the revision of RPGT to 30% (for house 2 yaers) tax instead of the new 30%?

    Secondly, my property S&P as dated Jun 2011, so how many percent RPGT when i dispose on 31 december 2014? 10% or 15%? MyPlease advise urgently.

  • Hi, Can i know if the revision of RPGT to 30% (for house 2 yaers) tax instead of the new 30%?

    Secondly, my property S&P as dated Jun 2011, so how many percent RPGT when i dispose on 31 december 2013? 10% or 15%? MyPlease advise urgently.

  • Sorry, pls ignored the previous 2 comments. (something wrong)

    Can i know if the revision of RPGT to 30% (for house <3 years) refer to S&P date or stamping date? If S&P is signed by this year and stamp in January 2014, can i fall back the current 10/15% tax instead of the new 30%?

    Secondly, my property S&P as dated Jun 2011, so how many percent RPGT when i dispose on 31 december 2013? 10% or 15%?

    Please advise urgently

    • Hi John, Your question is a bit of misleading, the calculation of RPGT is based on the holding period between S&P date.

      Jun 2011 to Dec 2013 is 2.5 years, it means RPGT of 10% should apply.

  • Many Thanks.

    May I know the RPGT are base on S&P date or stamping date?
    I’m going to sign the s&p on 31 December 2013 and stamp in January 2014, so the RPGT tax are base on 2013 or 2014?

  • Hi Angeline, I would like to check. my company is a investment holding companies and bought a ready building and renovated with intention to rented out. But subsequently there are good buyer and decided to sell it off. the holding period less than 2 years. my question is will IRB challenge the disposal under income tax for short term gain. Can I claim term loan interest as part of the expenses for RPGT?

  • Hi Angelina,
    I bought my property in 2010, and sold it few weeks ago (sign S&P) in Oct2013, but it has to go through the settlement process and will likely go beyond early Jan2014. My RPGT would be 10 or 30%? Thanks.

  • Hi, just is RGPT will effective on 1 Jan 2014. Since RGPT will be implemented soon, the seller sure will increase the house price 30% (For house less than 2 years) higher to absorb the cost. So buyer will need buy ‘expensive’ house. How to cope this?

    Please reply to my email

    • Hi Yen, the market is the match of willing buy & willing sell, you can set whatever the price you want, it’s up to whether the buyer want to buy at that price or not.

      If a unit of 1 Bukit Utama Condo was transacted at RM1,000,000 two months ago, will you want to buy a unit now priced at RM1,300,000 by an owner? If no one want to buy at that price after sometimes and the owner is now losing his patient in waiting the right price, the owner will lower the selling price.

  • Hi, since RGPT will go effective on 1 jan 2014. The seller will increase the house selling price 30% higher (2 years new house) Buyer will buy expensive house.
    How to cope this?

    Please advise

  • Richard Lim

    I have a condo and S& P signed in June 2013, price RM 250,000
    I want to transfer the condo to my girlfriend’s name at the same price RM 250,000 in 2014.

    Do I have to pay RGPT even there is NO capital gains?

  • Hi Angelina, understand that the following are exemptions for RPGT:

    1) Exemption on gains from the disposal of one residential property once in a lifetime to individual
    2) Exemption on gains arising from the disposal of real property between family members
    3) 10% of profits OR RM10,000 per transaction (whichever is higher) is not taxable

    Is there any limit for the 2nd exemption?

    If I were to transfer one of my property to my family member, am i still eligible to claim first exemption on sale of another property of mine to a 3rd party?

    Thanks!

  • hi, i would like to enquire about my clients transaction last year 2013..she inherited the property from her deceased husband on 2009 which was earlier bought by her late husband at rm1 million leasehold bungalow…i manage to sell the unit last year at rm3.2million..( she obtained her court order last year with her four underage children and till date waiting for the state consent approval)does she liable for the new RPGT 2014? also she is a foreigner..also can she opt for once in a life time tax exemption?please advice.thank you.rgds vishnu

  • good info , appreciate the replies angelina

  • Hi there,

    I’m a foreigner with mm2h certificate.

    I have recently make a down payment for a Property with value of rm660k and I have signed s&p on 31st Dec 2013.

    According to the lawyer, they Will only send the SNP for stamping on 13rd Jan 2014.

    Under 2014 New guideline for foreigner for purchase of property in Malaysia, will I still eligible ?

  • Dear Angelina, I inherited a house from my late father in 2013 and the property has been officially transferred to me. How is the market value determined at the time of transfer? Is it the value stated on the Borang E (akta harta pusaka)?

  • Hi Angelina,

    What about GST? its 6% effective 2015 rite? If i am selling a property now do i have to pay GST?

  • Hi Angelina,
    My daughter bought a property & the SPA was signed on 1 July 2010. December 2013 she obtained the Singapore citizenship. Now she intend to dispose the property. I wonder what she will be categorized in the RPGT :- a Malaysian selling the property Or a non-Malaysian selling the property.

    Thanks & regards.

  • Andrew Horsnell

    Hi,

    which RPGT rules apply for a residential property owned in joint name where one person is a resident and the other non-resident ?

    Thanks

  • 1)hi, my son and daughter join name and bought a house (S&P sign on 18/05/2011),if they wanted to sell the house on Jun 2014, how many %RPGT will be tax? Can they apply for full exception on this? (1st time sell on property)

    2)this exception apply on who`s name?

  • Hi Angelina , I purchased property S&P signed Feb 2011 (S&P date) . I sold it in end of November 2013 (S&P date), which is in 3rd year. The tax rate stated in LHDN letter is 20%. Is my case applying the RPGT 2014? Or should it be 10%?
    By the way, may I know the “Harga Pelupusan” (Disposal Value) & “Harga Perolehan” (Acquisition value) in LHDN letter reflect my house purchase & selling price?
    Please advise.
    Thank you.

    • Hi Sue, your disposal date was by end of November 2013, so the 2013 rates should apply.

      You can add stamp duty & legal fee paid as part of the cost of purchased & disposal.

  • Hi Angelina, would appreciate if you could advise on :
    (a)if I own 2 houses, first house bought in the year 2010 & second house in 2011. Can I claim the once-in-a-life-time full 30% RPGT exemption for selling my second house while maintaining the first house ?
    (b) I bought the second house under joint name with another person, can I claim the once-in-a-life-time RPGT exemption for 1 person only while the other person still maintains his right for future exemption claim ?
    Appreciate it and thanks.

  • Hi Angelina,

    i have bought a property with my brother under joint application, if we sell off the property (1st time) and apply for the RPGT exemption, will it consider both of us already utilized the exemption or either 1 of us are still eligible in future?

  • Hi Angelina, I have paid a booking fee to purchase a piece of land last year. Unfortunately, the land owner passed away 2 weeks after taken my booking fees. The land was willed to his son. Now the whole purchase has been put on hold because the new owner is reluctant to sell as he is afraid he will have to pay RPGT 30%. So my questions are:
    1. Does the new owner need to pay RPGT if he sell the land to me in less than 1 year after the name transfer based on his parent will?
    2. If the new owner ask for higher price than earlier agreed price ( with his parent) , what should I do, assuming I don’t agree with the new price? Can I get the booking fees back?
    Thank you for your help in advance.

  • Hi Angelina- gd day,

    Is it true a married couple eligible only one exempt eventhough both have prop under separate names after marriage. mean either husban or wife only can claim the once a lifetime exemption?

  • May I check with you that whether there is still “RPGT Exemptions” under Budget 2014? If yes, could you kindly advise where could I find this information? Thank you.

  • Hi Angelina , I purchased property S&P signed August 2011 (S&P date) .
    1st question , i bought it for 450k & sell it for 540k on feb 2014
    (90 k profit)
    do i need to pay 30% from profit amount or there is a other calculation ?.
    do you able to calculate for me , what will be the tax amount that i need to pay for 90 k profit ?
    2nd question this is my 1st property and i purchase under me & my wife
    can claim one time redemption only under my name because i want to spare my wife redemption for other property.

  • Dear Angelina,

    My father transferred 50% portion of his house to me in 2012.

    a) Now if I want to sell the 50% of my portion to my sister, can I claim for the once in a lifetime RPGT exemption?

    b) How IRB calculate the profit? Property was first bought in 2001 for RM 280,000 and subsequently 50% share was transferred to me in 2012. Now the property’s value is RM 650,000. Kindly advise?

    c) What is the procedure to apply for RPGT?? Do I have to inform the lawyer that processing the new transaction about my intention to claim for RPGT exemption or wait for the letter from IRB and then apply for once in a lifetime RPGT exemption?

    Thank you and regards.

  • Hi angelina… i just sell my property last year 2013 …its cost about 380k.. but the property belongs to harta pusaka…should we paid rptg for harta pusaka nominie is me…we did kuasa..last year…so.. do i should paid gain tax for harta pusaka?

  • You should be recognized nationally,as a Property Agent i find the whole answers frm all my clients are scheduled here,90% of the clients from both sides have these as questions.Extremely well done job,a big THANK YOU.

  • Hi, I have found the formula on calculating RPGT on LHDN website and i’m confused on the calculations. Hope you can help to solve my confusion. Eg. i sold my house on the 4th yr & capital gain MYR 60k.

    1st calculation which most people advise me is :

    20% x (MYR 60k – RM10k or 10% of capital gain whichever is higher)

    2nd calculation i got from LHDN website :

    Nilai balasan 300,000
    Tolak: Harga perolehan 240,000
    Keuntungan daripada pelupusan 60,000

    Keuntungan yang dikecualikan:

    ((60,000 x 20%)-( 60,000 x 5%)X60,000))/(60,000 x 20%)=45,000

    Keuntungan yang boleh dikenakan cukai : (60,000-45,000) = 15,000

    Cukai yang dikenakan: 15,000 x 20% = 3,000

    So effectively is only 5% of capital gain RM 60k.

    Can i confirm which formula i should follow and use?

  • Hi,my sister,me and my husband purchase a condo in year 2011. Can my sister transfer the property to me with the same purchase price on 2014,then I transfer to my husband and my husband sell it on 2014 with rpgt once in a life time exemption?will me or my sister get tax?

  • Dear Angelina

    You blog is interesting and knowledgeable on RPGT issues.
    May I know if you do provide RPGT consultation with a fee?
    I used to buy and sell properties on a part time basis and would be grateful if you can help me to do some RPGT computation.

    Appreciate your reply and advise

    Bought a Building Rm1,8888 sold it Rm2,730.00 Bought 4years 3 months ago

    Advise what are the expenses I can deduct from the gains

  • Hi Angelina,

    My SPA dated 30 March 2010, I sold it 30 March 2014 and SPA will dated 10 Apr 2014, it is considered as 4th year or 5th year?

    Thanks a lot.

  • Hi, would to enquire i and my husband bought a house in June 2011 and intend to sell in July 2014. Will we subject to 30% or 20% tax rate? And secondly previously I hv opted waiver of rpgt and when we sell this unit will my husband get waiver of his portion since he has not use the lifetime waiver?

  • Hi Angelina,

    Let say I’m buying my first house in 2014 and if i want to sell that house in 2016, does this so-called once in a life time RPGT exemption still applicable?

    Thanks!

  • Jesse Yong

    Does the exemption for RPGT on gains from the disposal of one residential property once in a lifetime to individuals applies to 2 individual sharing a residential unit?

  • Can maintenance fee and bank loan interest use for gain tax deduction?

    I already use the one in a life time exemption, i can still enjoy the
    10% of profits OR RM10,000 per transaction (whichever is higher) is not taxable?

  • I would like to find out if I’m going to sell a house which the GST already implemented. Do I need to pay for GST for selling a house?
    Thank you.

  • Dear NBC Angelina,

    I would like to clarify regard the REAL PROPERTY GAINS TAX (RPGT) for sales of property.

    My refinance mortgage from Public Bank Berhad has been in effect since 17th June 2009 and will meet the 5 years occupation period on the 17th June 2014.

    According to the information I’ve gather online from the Malaysian Institute of Accountants (MIA) regarding the REAL PROPERTY GAINS TAX FOR YEAR 2014.

    http://www.mia.org.my/new/downloads/circularsandresources/budget/2014/C3.pdf

    “With effect from 1 Jan 2014, the uniform RPGT rates applicable for individuals and companies will no longer apply. For companies and individuals who are Malaysian citizens and permanent residents, a tax rate of 30% will be imposed for a holding period of up to 3 years, 20% for a holding period exceeding 3 years and up to 4 years and 15% for a holding period exceeding 4 years and up to 5 years. RPGT of 5% will be imposed for a holding period exceeding 5 years for companies while individuals who are Malaysian citizens or permanent residents will not suffer RPGT if the holding period exceeds 5 years. Individuals who are not Malaysian citizens will be subject to RPGT at the rate of 30% for a holding period up to 5 years and 5% for a holding period exceeding 5 years.”

    From the information provided, it was stated that no RPGT will be imposed for sales of properties by Malaysian citizens after 5 years of ownership. Can you kindly confirm will RPGT be applicable for sales of property by a Malaysian Citizen after 5 years of ownership? Thanks.

  • Hi,
    I just buy a new house with my brother last jan13,the purchases price RM298,000, now thinking to transfer the house from my name to my mother.
    may I know I need to paid the REAL PROPERTY GAINS TAX (RPGT)if I transfer name to my mother?
    Thank you

    • You don’t need to pay cause you are not selling, just transfer to your mom’s name.
      but you have to pay legal fees of course.

      you can find out on the http://www.hasil.gov.my

      • Agreed with Vin Tan!

        No tax but you need lawyer to do the job like handling with land office for freehold property, or state government in case of leasehold property.

        • Thanks Vin Tan & Angelna,
          I planning to transfer 1/2 share to my mother, the house still under loan. Can help calculate the estimate lawyer fees if i doing the transfer?

        • Sorry, Jasmine, you will have to check with lawyers on this. Can’t help on this. :P

  • Hi,
    I would like to know the ‘one life time exemption’ is for individual right?
    If i have a property under my own name, i can opt for the exemption.
    if my husband has a property on his own name, he can opt for his own exemption right?
    I have heard some saying husband and wife only can have one exemption even the property is only under wife’s name ( the husband has no exemption anymore)
    I don’t think is true and would like to reconfirm with you.
    Thank you for your kind attention.

    Regards,

    Vin Tan

    • Yes, Vin Tan, it is true that there will be only one exemption for husband & wife. If anyone of you have claimed before, even way before the marriage, then there will be no more claim available.

      • dear NBC:
        I am still not convince…so I took the trouble to call the tax department.
        They told me everyone no matter married or not, he or she will be entitled to one life time exemption for individual for residential property only.
        pardon me, NBC, I have to correct you.

        regards.

        • Thanks, Vin Tan. Great to have discussion like this and appreciate your effort to find the answer. I’m not in town at the moment. Will find the book for this matter when back. See u.

  • I bought house in 2011 and just sold it in June 2014.
    Would like to know if I can deduct:
    ~ Stamp Duty paid
    ~ Legal Fees paid
    ~ Renovation amount
    ~ RPGT exemption up to RM10,000 or 10% of net gains, whichever is higher
    ~ Kindly share the calculations
    Thanks

  • hi angelina,

    1. would like to ask about holding period for property purchase during construction. Beginning of the holding period starts from S&P or land title date or CF?

    2. does exemption of RPGT apply when selling property to family member at a higher price than the original price ( ie: will get profit after selling)?

    3. please confirm regarding once a life time exemption for married couple.. is it per couple or per individual?

    Thanks

    • Hi JH, holding period start from date of s&p agreement. Deal among brothers and sisters are considered ordinary transaction, rpgt rules and regulations are applicable.

      The third question will be answered later.

  • Vincent Tan

    Hi appreciate your advise on m query below. I think I got the answer but just wanted to be sure.
    I have a property where the S&P was dated 18 April 2010. With the new RPGT in 2014, I wish to know what is the earliest date that I should date the S&P upon selling my property to avoid paying tax or tax rate at “zero”. Is it 19 April 2015 or 19 April 2016?
    Much appreciated.

  • Firstly, thank you for taking the time to answer so many people’s questions. I am sure that we all appreciate it. I have a few questions of my own please. Situation: My father passed away a month ago and left his house to me (60%) and my sister (40%).

    1. If we were to sell the house immediately, how is the capital gain tax calculated based on? Let us say that he bought the house 30 years ago at RM30K and it is worth RM300K today. If the capital gain based on RM270K (33oK-3oK) or is it the capital gain after the house has been transferred to us?

    2. If my sister chooses to sell his 40% share to me, can he not pay RGPT by using the exemption of transfer between relatives (I read somewhere that says that this exemption exists)?

    Thank you very much

    • Hi Torshen, the transfer from your late father was taken place not long ago and the transfer is deemed dispose and purchase at no gain no loss, means transfer at current market rate.

      There will be not much increase in market price for that short period, so not possible to have any rpgt, unless LHDN officer has other thought.

      The transfer between you and your sister is better get it done as earlier possible, as the transfer will be treated as normal or ordinary transaction, RPGT will apply if any gain.

  • Hi,
    My husband bought a house under his and his ex-wife name during year 2008 and they divorced and transfer the name of the house to my husband only on year 2010 . Now , i want to sell the house , will i need to pay RPGT ?
    The date is based on year 2008 or year 2010 ?

    thank you very much for your advice .

    • @Michelle, 1/2 of the purchase price is based on s&p agreement singed in 2008 (husband portion) and 1/2 of purchase price is based on market value in 2010 (transferred portion).

  • Hi, Angelina.

    I am the owner of the house and now I would like to transfer half share (50%) of my house to my husband as a gift and the house will become joint name of us. So i want to ask under this situation is it subject to tax or it is treated as no gain no loss transaction and not subject to tax?

    Please do reply because I need your help to solve this problem.
    Thank you very much.

  • Hi,

    I purchased a property which is stamped commercial at the master title deeds (a hotel unit). The unit was leased by the previous owner to the hotel but when I bought it, I terminated the lease and the said unit has been used for dwelling purposes. If I sell it within 5 years, can I opt for the once-in-a-lifetime expemtion? (since the declaration under CKHT3 is that it has been used as a dwelling unit)

    Thank you very much.

    • @Kris, once in a life time exemption is applicable to residential unit. I afraid your case is not applicable for exemption.

  • Hi

    My first property was purchased under join name with my ex husband in 2008. We have officially divorced in year 2011 subsequently I also transfer the name of the house to my ex husband

    In year 2012 i bought my new property under my name and now i decided to sell it , can i eligible to claim for GPGT?

    Thank you very much.

  • Hi,
    Would like to seek yr advise on the following :

    1) We would like to sell our 3 year old house but this house land title
    is a commercial lot title. I’m not sure whether the houses in the
    surrounding area hold the commercial or residential title but the
    whole area is a housing area. Hence is it possible this property can
    be exempted from RPGT by submitting some kind of evidence ( ie:
    electricity bill, water bill ) to LHDN to
    show that this is a residential lot and not a commercial
    lot although the land title is commercial?

    2) Most of Soho units in KL are under the commercial title hence does
    this mean we can’s sell these units within 5 years if we want to
    exempt from RPGT ?

    Appreciate yr advise.

  • Thanks Angenila,

    What if the CFO states it is certified for occupation as “service apartment”?

    thanks again!

  • Hi,

    I had bought a property in Jan 2012, just want to know the actual RPGT is how many % if I sell it in Dec 2014

  • Hi Angelina,

    For example if i have a commercial land which is inherited from my father (without any valuation being done since direct court order via LA), and the property is owned by my father for more than 10 years, once the commercial land is officially transferred to my name & i have decided to dispose off the land immediately at, say RM5mil (not so sure what is the price or value at the point that my father purchased it). So the questions are:

    1) Will RPGT applies in this case?
    2) If so, what rate will be charged and based on what ground (what will be the gain as no valuation being done during the transfer)?
    3) If RPGT applies, will there be any way or clauses to get exemption?
    4) If RPGT is exempted in this case, will LHDN comes after me for other reasons?

    Thanks & really appreciate your kind advise.

  • Jessica Soosai

    Hi… Ive signed a Sale and Purchase Agreement on 21/11/2013 to sell my property to a foreigner. The Foreigner’s consent was only obtained in January 2014. Thus I was made to pay 20% on the disosal of the Property. I bought the Property on 23/11/2010? Is this fair?

  • Hi,

    Hse was transfer into my name in 2012
    Sold the hse within 2013, recdv Statement frm IRD , Rate on RPGT 30%, Shud the rate be 15%?

    If the buyer markup the purchase price in order to gain bank loan, can i argue with the IRD That I actually recvd less than that.

    thks.

  • Dear Angelina,

    Is SOHO can be considered as residential unit for ‘one in a life time’ tax exemption? Since as owner, i can use it for own dwelling. The SPA mentioned the parcel as ‘Office Suites’ the Building as ‘commercial building’. The land title H.S. (D) xxxxxx
    Thank you very much

    • Hi Leng, your soho unit will be considered as commercial unit, not residential unit. So you can’t claim rpgt exemption for this unit.

  • Hi, if my holding company owns land and wanted to develop, but the developer is the subsidiary company, what is the best way the do to minimize tax?

  • Christopher

    Year 2011, I bought a condo which is joined name with my sister. But last year (2013), my sister migrated to Singapore.
    As this is our first property and we are entitle for one-in-a-lifetime exemption, but how about my sister?
    Note: We are planning to sell off the condo this year.

  • Hi there. Its awesome how youre helping everyone with your answers.

    I bought a commercial property in 2011 May. The S&P was signed a couple of months later. Is PGT calculated based on acquisition of property or date S&P is signed?

    WHat will be my PGT if I decide to sell now?

  • hi dear,
    I bought house in 2011 and sign s&P in 2011 but get the key in 2013.If i want to sell my house now how much will be RPGT?it will follow RPGT 2013 or RPGT 2014?and how is the calculation.I bought the house 258k and planning to sell 330K.Please help me

  • I am not a Malaysian and I hv bought a condo in July 2012. Thinking of selling it this year. Please advise any tax and charges incurred.

  • My wife & I plan to sell a condo and intended to claim for once in a life time exemption. Is there any way to check whether we have claimed before cos I have made few transaction on properties before with no or very little profits but not my wife.

  • Hi Angelina,

    Need your advise here. I always thought that houses bought during that year would be subjected to that years law.
    I bought a house in June 2011 and thought of disposing of it in 2014 and at that time, i thought that i could dispose of the house after 3 years without any tax as i thought i remembered reading somewhere that i could dispose of it without any tax after 3 years.
    So, if i am looking into disposing of it in 2014, how many percent tax would that be? What about 2015?

    Appreciate your advise on this
    Thank you

  • Hai Angeline, me and my sibling bought a house in March 2011 and plan it to sell it now. Based on the RPTG rate we need to pay 30 percent on it. My question is can we entitle and claimed for one in a life time exemption? FYI, this is our first property ever and we never claim anything before. Please advise. Thank you in advance. Have a nice day ahead.

  • Hi, two questions for your advice. my spouse is a foreigner and bought a property, of which I a Malaysian took some money from EPF to contribute although it is under her name. Is this property considered for RPGT by foreign ownership since I put in money or could it be considered as a Malaysian sale of property? If RPGT has to be administered, can you point out or let us know what items could be considered toward cost minimisation of tax?

  • We have submitted the form for the property gain tax. Can i know how long will i have the answer of the amount that we tax. (Rpgt).

  • Ricky A Bunuan

    I constructed a house on my mother’s land during 2010, and now I wish to sell it. The expected sales value is definitely more than the construction costs, but there was no valuation done on the land.
    Will this transaction attract the RPGT and if yes how will it be assessed and calculated?
    Thnak you

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