Real Property Gains Tax (RPGT) exemptions are available in the following circumstances:
- An individual who is a Malaysian citizen or a permanent resident will be given a once-in-a-lifetime exemption on any chargeable gain arising from the disposal of his/her private residence if he/she elects in writing for the exemption to apply to that private residence.
- An individual will be given an exemption equal to RM10,000 or 10% of the chargeable gain, whichever is greater.
- Gifts between husband and wife, parent and child or grandparent and grandchild are deemed to be “No gain no loss” transactions.
- Transfers between companies:
(a) Transfers within the same group to bring about greater efficiency and for a consideration consisting substantially of shares in the transferee company.
(b) Transfers between companies for the purposes of reorganisation, reconstruction or amalgamation where the transferee company is being restructured to comply with the Government’s policy on capital participation in industry.
(c) Assets distributed by a liquidator under a scheme of reorganisation, reconstruction or amalgamation where the transferee company is being restructured to comply with the Government’s policy on capital participation in industry.
- Transactions in which the disposal price is deemed equal to acquisition price (i.e. “No gain no loss” transactions):
(a) Devolution of a deceased person’s assets to his trustee or legatee.
(b) Transfer between spouses.
(c) Transfer of assets owned by an individual, his wife or by an individual jointly with his wife or with a connected person to a company controlled by the individual, his wife or by an individual jointly with his wife or with a connected person, for a consideration consisting substantially (more than 75%) of shares in that company.
(d) Transfer between an individual and a nominee who has no vested interest in the assets.
(e) Transfer by way of security in or over an asset.
(f) Gifts to the Government, local authority or charity exempt from income tax.
(g) Disposal due to compulsory acquisition.
(h) Disposal of chargeable assets pursuant to an approved financing scheme which is in accordance with Syariah principles, where such disposal will not be required for conventional financing schemes.
Exemptions via Gazette Orders which are currently available include:
- Disposal of chargeable assets in relation to the Sukuk issued by the Malaysian Global Sukuk Incorporated.
- Disposal of chargeable assets in relation to the Sukuk Bank Negara Malaysia – Ijarah issued or to be issued by BNM Sukuk Berhad.
- Disposal of chargeable assets to Real Estate Investment Trusts and Property Trust Funds.
- Disposal of chargeable assets in relation to the issuance of private debt securities under Islamic principles.
- Disposal of chargeable assets:
(a) to or in favour of a special purpose vehicle; or
(b) in connection with the repurchase of the chargeable assets, to or in favour of the person from whom those assets were acquired, for the purpose of a securitisation transaction.