REAL PROPERTY
GAIN TAX
GAIN TAX
Capital gains are generally not subject to tax in Malaysia. With effect
1st April 2007, the Government has exempted all persons from the
provisions of the RPGTA on assets disposed. “Person” includes a
company, a partnership, a body of persons, an executor of an estate
and a corporation sole.
In the past, real property gains tax was charged on gains arising from
the disposal of real property situated in Malaysia or of interest,
options or other rights in or over such land as well as the disposal of
shares in real property companies. The tax rates for Malaysian citizens
and permanent residents were as follows:
Disposal within 2 years 30%
Disposal in the 3rd year 20%
Disposal in the 4th year 15%
Disposal in the 5th year 5%
Disposal in the 6th year and thereafter
- Company 5%
- Individual nil
Citizens and permanent residents also enjoyed an exemption of RM5,
000 or 10% of the gains whichever is the greater, besides a one-time
tax exemption on the gains arising from the disposal of one private
residence.
For non-citizens and non-permanent resident individuals, gains from
the disposal of real property within five years are taxed at a flat rate
of 30%, after which the tax rate will be 5%.
1st April 2007, the Government has exempted all persons from the
provisions of the RPGTA on assets disposed. “Person” includes a
company, a partnership, a body of persons, an executor of an estate
and a corporation sole.
In the past, real property gains tax was charged on gains arising from
the disposal of real property situated in Malaysia or of interest,
options or other rights in or over such land as well as the disposal of
shares in real property companies. The tax rates for Malaysian citizens
and permanent residents were as follows:
Disposal within 2 years 30%
Disposal in the 3rd year 20%
Disposal in the 4th year 15%
Disposal in the 5th year 5%
Disposal in the 6th year and thereafter
- Company 5%
- Individual nil
Citizens and permanent residents also enjoyed an exemption of RM5,
000 or 10% of the gains whichever is the greater, besides a one-time
tax exemption on the gains arising from the disposal of one private
residence.
For non-citizens and non-permanent resident individuals, gains from
the disposal of real property within five years are taxed at a flat rate
of 30%, after which the tax rate will be 5%.
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