Real property gains tax (RPGT) are still payable even when the property transaction is carried out using cryptocurrency, said Inland Revenue Board (IRB) CEO Datuk Seri Sabin Samitah.
He noted that such deals fall under the Real Property Gains Tax Act 1976, in which the buyer and vendor are required to disclose transaction details to the IRB.
His statement follows the sale of a 1.22ha site on Libaran island, just off Sabah’s coast for half a bitcoin, which was worth around RM38,000 during that time.
Polycarp Chin paid a deposit of 0.05 bitcoin (RM3,883.25) to businessman Alexander Yee, with the remaining 0.45 bitcoin payable upon the transfer of land ownership.
He revealed that the IRB is currently investigating if the two parties have declared their transaction.
“We are checking to see if they are aware they are required to pay the property gains tax, if any, when using cryptocurrency.”
Based on the current RPGT rates, Malaysians and permanent residents are liable to pay RPGT of 30 percent on disposal made within the first three years of acquiring the property. The tax drops to 20 percent in the fourth year and 15 percent in the fifth year. No tax is payable for disposals made on subsequent years.
Companies, on the other hand, are liable to pay a tax of 30 percent on disposal in the first three years of owning the property, 20 percent in the fourth year, 15 percent in the fifth year and six percent in the sixth year.
Meanwhile, foreign citizens are taxed 30 percent for the first five years, and five percent in the sixth and seventh years.
Image sourced from Milliyet.
This article was edited by the editorial team of PropertyGuru. To contact them about this or other stories email editorialteam@propertyguru.com.my
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