RPGT 2013

Malaysia has increased the tax rate from 10% to 15% on profits individuals make on sale of their property within two years of purchase. The property gains tax on sales in the 3rd to 5th year after purchase has also been increased from 5% to 10%..

The reason for this according to the government is to control the recent rapid rise in house prices blamed on real estate speculation.

This rule applies to all. After 5 years, any gain on sale of property whether by citizens or foreigners are exempted totally from tax.

The so-called ” once in a life time” exemption from RPGT under Section 8 of the Act is only given to Malaysian citizens, permanent residents and foreign wives married to and owning property jointly with their Malaysian husbands (no exemption if the foreign spouse is male married to a Malaysian woman! )

The Real Property Gains Tax applies to all disposal of property after 1 January 2013.

This entry was posted on Wednesday, May 29th, 2013 at 10:09 am and is filed under PROPERTY LAW. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.