Real Property Gain Tax (RPGT)
Real Property Gains Tax is charged on chargeable gain arising from the disposal of real property over such land as well as the disposal of shares in real property companies.
e.g.
Legal Fees
In excess if RM 7,500,000.00 - Negotiable on the excess (but shall not exceed 0.4% of such excess)
Stamping of Facilities Agreement
0.5% x Loan amount + RM 10.00 per copy
Real Property Gains Tax is charged on chargeable gain arising from the disposal of real property over such land as well as the disposal of shares in real property companies.
- RPGT exemption on net gains from the disposal of one unit residential property once in a lifetime by an individual who is a citizen or a permanent resident of Malaysia; (situation when husband & wife exercises this option separately)
- RPGT exemption on gains from disposal of property between parents and children, husband and wife, grandparents and grandchildren;
- Chargeable gain - RPGT us charged only on net gains after deducting all related costs such as purchase price, renovation costs, commission and incidental cost e.g. legal fees; and
- Exemption up to RM 10,000.00 or 10% of the net gains, whichever is higher, is given to an individual
- 2% of purchase price to be withheld
- income tax number necessary
Holding Period
|
RPGT Rates
(Up to December 2013)
|
||
Companies
|
Individual
(Citizen & PR)
|
Individual
(Non-Citizen)
|
|
Up to 2 years
|
15%
|
15%
|
15%
|
Exceeding 2 until 5
years
|
10%
|
10%
|
10%
|
Exceeding 5 years
|
0%
|
0%
|
0%
|
Holding Period
|
RPGT Rates
(From 1st January 2014)
|
||
Companies
|
Individual
(Citizen & PR)
|
Individual
(Non-Citizen)
|
|
Up to 3 years
|
30%
|
30%
|
30%
|
4th year
|
20%
|
20%
|
30%
|
5th year
|
15%
|
15%
|
30%
|
6th year onwards
|
5%
|
0%
|
5%
|
Professional Fees - Estate Agency (Seventh Schedule)
Sale or Purchase
a) Land and Building - Maximum fee of 3%
b) Fees for other services such as joint venture, sale of company property swaps etc. - Maximum fee of 3%
c) Chattels (movable property) including Plant and Machinery - 10% of the proceeds
Minimum fees: As above, subject to a minimum fee shall be RM 1,000.00 per property.
-The above scale applies to any sale or purchase by way of private treaty, tender or any other mode of disposal or acquisition.
Sale or Purchase
a) Land and Building - Maximum fee of 3%
b) Fees for other services such as joint venture, sale of company property swaps etc. - Maximum fee of 3%
c) Chattels (movable property) including Plant and Machinery - 10% of the proceeds
Minimum fees: As above, subject to a minimum fee shall be RM 1,000.00 per property.
-The above scale applies to any sale or purchase by way of private treaty, tender or any other mode of disposal or acquisition.
Calculation of Stamp Duty
First RM 100,000.00
|
1%
|
Next RM 400,000.00
|
2%
|
Any amount in excess of RM 500,000.00
|
3%
|
e.g.
Purchase
price RM 600,000.00
|
||
First RM 100,000.00
|
1%
|
RM 1,000.00
|
Next RM 400,000.00
|
2%
|
RM
8,000.00
|
Next RM 100,000.00
|
3%
|
RM 3,000.00
|
Total
|
RM
12,000.00
|
|
Applicable to stamping of Memorandum of Transfer and
Deed of Assignment
1st RM 150,000.00
|
1.0% (minimum of RM 300.00)
|
Next RM 850,000.00
|
0.7%
|
Next RM 2,000,000.00
|
0.6%
|
Next RM 2,000,000.00
|
0.5%
|
Next RM 2,500,000.00
|
0.4%
|
In excess if RM 7,500,000.00 - Negotiable on the excess (but shall not exceed 0.4% of such excess)
source: Malaysia Institute of Estate Agents (MIE)
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