Real Property Gain Tax Act Malaysia

Real property gains tax rpgt is a form of capital gains tax that homeowners and businesses have to pay when disposing of their property in malaysia.

Real property gain tax act malaysia. Pursuant to real property gains tax act 1976 real property gains tax rpgt is tax charged by the inland revenue board lhdn on gains derived from the disposal of real property such as land and building. Real property gains tax act 1976 an act to provide for the imposition assessment and collection of a tax on gains derived from the disposal of real property and matters incidental thereto. Which means that if one day you decide to sell your house you have to pay taxes on the profit gains if you have any. Real property is defined as any land situated in malaysia and any interest option or other right in or over such land.

Real property gain tax or in malay is cukai keuntungan harta tanah ckht is a tax imposed on gains derived from the disposal of properties in malaysia. In exercise of the powers conferred by subsection 9 3 of the real property gains tax act 1976 act 169 the minister makes the following order. In malaysia rpgt is a tax imposed by the inland revenue board lhdn on chargeable gains which find their source in the disposal of real property. Rpgt is also charged on the disposal of shares in a real property company rpc.

If you sell your house with a loss you don t have to pay any rpgt because you didn t make any profit. Rpc is essentially a controlled company where its total tangible assets consists of 75 or more in real property and or shares in another rpc. In malaysia real property gains tax rpgt is one of the most important property related taxes and is chargeable on the profit gained from selling a property. It includes both residential and commercial properties estates and an empty plot of lands.

Real property gains tax 7 laws of malaysia act 169 real property gains tax act 1976 an act to provide for the imposition assessment and collection of a tax on gains derived from the disposal of real property and matters incidental thereto. Every person whether or not resident is chargeable to rpgt on gains arising from disposal of real property including shares in a real property company rpc. This fact is specified in the real property gains tax act 1976 act 169. Rpgt is imposed as a result of the profits made from the difference between the disposal price and acquisition price.

1 2 this order shall be deemed to have come into operation on 1 january 2001. Whether you re a property investor or an owner just simply looking to sell your current home to purchase your dream home it s important to be aware of all costs associated with a real estate transaction.