Real Property Gain Tax
Real Property Gain Tax
Real Property Gain Tax
Real Property Gain Tax Act 1976 [Act 169]:http://www.agc.gov.my/Akta/Vol.%204/Act%20169.pdf [P.U. (A) 146/2007](revoked) :http://synergymanagement.com.my/main/Act/RPGT/2007/REAL%20PROPERTY%20G AINS%20TAX%20%28EXEMPTION%29%20%28NO.%202%29%20ORDER%20200 7.pdf [P.U. (A) 486/2009]:http://www.adventconsulting.com.my/admin/Upload/99A46_Real_Property_Gains_Tax_ %28Exemption%29_%28No._2%29_Order_2009.pdf
DEFINATIONS Section 2 of RPGTA 1976 chargeable gain has the meaning assigned by section 7; Sec.7 (1) Where a chargeable asset is disposed of, then (a) if the disposal price exceeds the acquisition price, there is a chargeable gain; (b) if the disposal price is less than the acquisition price, there is an allowable loss; and (c) if the disposal price is equal to the acquisition price, there is neither a chargeable gain nor an allowable loss. real property means any land situated in Malaysia and any interest, option or other right in or over such land; land includes (a) the surface of the earth and all substances forming that surface; (b) the earth below the surface and substances therein; (c) buildings on land and anything attached to land or permanently fastened to any thing attached to land (whether on or below the surface); (d) standing timber, trees, crops and other vegetation growing on land; and (e) land covered by water; shares means all or any of the following: (a) stock and shares in a company; (b) loan stock and debentures issued by a company or any other corporate body, wherever incorporated; (c) a members interest in a company not limited by shares whether or not it has a share capital; (d) any option or other right in, over or relating to shares as defined in paragraphs (a) to (c);
EXAMPTION The Minister exempts any person from the application of Schedule 5 of the Act on the payment of tax on the chargeable gain in respect of any disposal of asset on or after 1 January 2010 where the disposal is made after 5 years of the subject propertys acquisition. FORMULAR APPLICATION The Minister exempts any person from the application of Schedule 5 of the Act on the payment of tax on the chargeable gain in respect of any disposal of asset on or after 1 January 2010 subject to the condition that the amount of chargeable gain shall be determined in accordance with the following formula: A B Where:A : is the amount of tax charged on the chargeable gain on the person at the appropriate tax rate reduced by the amount of tax charged on such chargeable gain at the rate of 5%. B : is the amount of tax charged on such chargeable gain at the appropriate tax rate. C : is the amount of such chargeable gain. xC
RPGT Effective Tax Rate:Lets: Gain on chargeable property = Applicable tax rate = Where = ============== ============== Exemption formula:- 5% = (- 5%) - 5% x
= ( 1-
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