Real Property Gains Tax

Real Property Gains Tax (RPGT) is a tax levied by the Inland Revenue Board (IRB) on chargeable gains derived from the disposal of real property. This tax is provided for in the Real Property Gains Tax Act 1976 (Act 169). The tax is levied on the gains made from the difference between the disposal price and acquisition price.

DISPOSAL PRICE

The disposal price is the amount of money, or the value of consideration in monetary terms obtained from the disposal of any asset, less:

  • The cost or expenditure incurred in upgrading or increasing the value of the asset;
  • The cost or expenditure incurred at any time after the acquisition of the asset by the purchaser to determine, maintain or defend his right over the asset; and
  • The cost incurred by the vendor in selling the asset.

ACQUISITION PRICE

The acquisition price of an asset is the amount or value of the consideration in money or monies worth paid or given for the acquisition of the asset (together with the incidental costs of acquisition), less:

  • Any sum received by way of compensation for any kind of damage or injury to the asset;
  • Any sum received under a policy of insurance for any kind of damage or injury to or the loss, destruction or depreciation of the asset; and
  • Any sum forfeited as a deposit made in connection with an intended transfer of the asset.

RATE OF TAX

With affect from 1 January 2014 the rates of tax are as follows:

JPPH’s MALAYSIA ROLE

JPPH Malaysia determines the market value of the property disposed or acquired as requested by the IRB.

CLIENT’S CHARTER

All Real Property Gains Tax valuations shall be reported within eight(8) working days of receipt by the office.

OBJECTIONS ON VALUATION

Any objection on the valuation must be addressed directly to the IRB and a copy sent to JPPH Malaysia.

FURTHER APPEAL

A person aggrieved by an assessment made on him may appeal to the Special Commissioner.

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