📢 IMPORTANT PROPERTY TAX ALERT

LHDN has announced that all property ownership transfers in Malaysia must be reported within 60 days through the MyTax portal for Real Property Gains Tax (RPGT) purposes.

This mandatory reporting applies to: • Sale and purchase transactions • Transfer of rights • Transfer of ownership • Assignment of property

Both sellers (disposers) and buyers (acquirers) are legally responsible for reporting these transactions. Penalties for late reporting apply under Section 29(3) of the RPGT Act.

Non-compliance risks fines up to RM5,000 and imprisonment up to 12 months, or both.

The tax is designed to help increase national revenue, promote tax responsibility, and curb speculation in the property market.

For complete details on RPGT rates for different categories including individuals, companies, and foreigners, visit the official LHDN website: www.hasil.gov.my

Source: Bernama

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AMENDMENT ON REAL PROPERTY GAIN TAX

The Honourable Prime Minister had announced that with effect from 1 January 2010, chargeable gains from the disposal of ALL TYPE OF REAL PROPERTIES including shares in real property companies, which are held more than 5 years, disposed by ALL CATEGORIES OF PROPERTY OWNERS who are individuals (citizens, permanent residents, noncitizens and non-permanent residents of Malaysia), companies as well as other property owners, will be exempted from the Real Property Gains Tax (RPGT) of 5%.

Sources : Ministry of Finance Malaysia

Property tax only for sales within five years of purchase

PUTRAJAYA: The real property gains tax (RPGT) announced during the 2010 Budget will now only apply to property sold less than five years from its purchase, Datuk Seri Najib Tun Razak said.


The Prime Minister said the 5% tax would now only be imposed on property sold within five years of the date of purchase.

He said the decision would cause the Government to lose about RM200mil in revenue, adding the move was made following appeals from the Federation of Chinese Associations of Malaysia (Hua Zong) and the business sector.

“This was also decided upon as the Government wants to see a stronger growth in the property sector next year. We are willing to forgo a substantial amount of revenue so that the sector can expand and grow.

“The property sector has shown signs of improvement but we feel that it requires further impetus so that it can continue to grow from strength to strength.

Ministry clarifies Real Property Gains Tax

Ministry clarifies Real Property Gains Tax

Ministry of Finance clarified that the Real Property Gain Tax (RPGT), effective from 1 January 2010, is fixed at 5%, irrespective of the property disposal year and will be implemented through the Real Property Gain Tax (Exemption) Order 2009.
Based on the Finance Bill 2009, the RPGT for property disposal within 2 years is taxed at 30%, within 3 years is 20%, within 4 years is 15% & after 5 years is 5%.