Hello. Real Property Gains Tax is different from Income Tax where reliefs are provided. Real Property Gains Tax is taxed on the profits made from selling a property (originally to curb excessive speculation on properties). The current RPGT tax for individuals (not companies) are as follows:-
1. The first 3 years of disposal from SPA date is 30%
2. The 4th year of disposal is 20%
3. The 5th year of disposal is 15%
4. Thereafter 5%. If the purchase was done before the year 2000, the acquisition price will be valued at the year 2000 to derived at the profit to be taxed
However,
1. you may choose the once in a lifetime opportunity to elect an exemption from RPGT on the disposal of any one private residential property (not necessary the first property you buy) if you have not already done so.
2. 10% of profits or RM10,000 per transaction (whichever is higher) is not taxable.
3. You may offset, costs of repairs and renovations to the reisdential property, agents fees and lawyers fees on the profits. Your lawyer or your accountant will be able to advise you.further.
David Wong
Licensed Agent E2097
Foreward Realty Sdn Bhd - E(1)1909
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