Overview of RPGT
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. Both individuals and companies are subjected to RPGT. RPGT is also charged on the disposal of shares in a real property company (RPC). An RPC is a company holding real property or shares in another RPC with value not less than 75% of the value of the company’s total tangible assets.
RPGT 2014 tier rates for all three (3) groups are tabulated in the table below:
As per Schedule 4 of the Real Property Gains Tax Act 1976 individual can obtain RPGT exemption base on the following.
Disposal of one residential property once in a lifetime.
Transfer as gifts in between family members. This exemption is only applicable for transfer in between husband and wife, parent and child, grandparent and grandchild. Take notes that transfer between sibling, brothers or sisters are not applicable.
Waiver Exemption equivalent to 10% of chargeable gains or RM10,000 whichever is higher is not taxable. Prior to 1 Jan 2010, the exemption was equal to RM5,000 or 10% of the chargeable gain, whichever was greater.
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