Malaysia: Amends Real Property Gains Tax

Further to the 2010 Budget Tax Proposals on 23 October 2009, presented by Malaysia’s Prime Minister (who is also the Minister of Finance), there are amendments to the Real Property Gains Tax (“RPGT”).

With effect from 1 January 2010, chargeable gains from the disposal of real properties held more than five years will be exempted from the RPGT of 5 percent. Therefore, gain from the disposal of real property in which the holding period is within five years from the date of acquisition will be subject to RGPT at the rate of 5 percent.

This exemption is applicable for gains from all types of real property (including shares in real property companies) disposed of by all categories of property owners who are individuals (citizens, permanent residents, non-citizens, and non-permanent residents of Malaysia), companies, as well as other property owners.

Malaysia: Amends Real Property Gains Tax

Malaysia: Amends Real Property Gains Tax

An Exemption Order under the Real Property Gains Tax Act 1967 will be gazetted to enact the above exemption.

Further to the 2010 Budget Tax Proposals on 23 October 2009, presented by Malaysia’s Prime Minister (who is also the Minister of Finance), there are amendments to the Real Property Gains Tax (“RPGT”). (For coverage of the 2010 Budget, see Flash International Executive Alert 2009-200, 26 October 2009.)With effect from 1 January 2010, chargeable gains from the disposal of real properties held more than five years will be exempted from the RPGT of 5 percent. Therefore, gain from the disposal of real property in which the holding period is within five years from the date of acquisition will be subject to RGPT at the rate of 5 percent.This exemption is applicable for gains from all types of real property (including shares in real property companies) disposed of by all categories of property owners who are individuals (citizens, permanent residents, non-citizens, and non-permanent residents of Malaysia), companies, as well as other property owners.An Exemption Order under the Real Property Gains Tax Act 1967 will be gazetted to enact the above exemption.

Source: KPMG

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