KUALA LUMPUR, Oct 25 (Bernama) — The real property gains tax (RPGT) will be fixed at five percent on the gains from the disposal of real property effective 1 January 2010.
Reiterating this on Sunday, Second Finance Minister Datuk Husni Hanadzlah said that the rate imposed is irrespective of the holding period and the category of the owner.
He said that this rate of five percent will be implemented through the Real Property Gains Tax (Exemption) Order 2009.
This Order will be gazetted as soon as possible and effective 1 January 2010.
“Therefore, the current rate of RPGT which is higher than 5.0 per cent as in Schedule 5 of the Real Property Gains Tax 1976 will no longer be applicable,” he said in a statement here.
This means that the previous rate of 30 per cent decreasing to 5 percent based on the holding period of the property is no longer applicable.
However, exemptions to the individuals are given as follow;
* The level of exemption is increased from RM5,000 to RM10,000 or 10 per cent of the chargeable gains, which ever is the higher;
* Gifts betwen parent and child, husband and wife, grandparent and grandchild; and
* disposal of a residential property once in a lifetime.Source: Bernama