Currently, gains from the disposal of property under the Real Property Gains Tax Act 1976, are assessed formally by the Inland Revenue Board (IRB or more commonly known as LHDN)
The Government has implemented the Self-Assessment System for individual and company income tax effective from the year 2001 and 2004, respectively.
In tandem with the Government’s aspiration to modernise the tax system and given that people are more responsible, it is proposed that tax on gains from the disposal of property be self-assessed by the taxpayer effective from the year 2016.
The rates for real property gains tax (RPGT) for properties disposed of in 2015 will be the same as of 2014:
|REAL PROPERTY GAINS TAX FOR 2014 & 2015||Tax Rates|
|Personal (citizen & PR)||Company|
|Disposed within 3 years||30%||30%|
|Disposed in 4th year||20%||20%|
|Disposed in 5th year||15%||15%|
|Disposed after 5 years||0%||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.