This week we will be looking at answering a number of queries from MyPF readers-clients.
Q: Do I have to pay income tax for selling property aside from RPGT?
A: Only Real Property Gains Tax (RPGT) applicable. No other capital gains tax on property in Malaysia.
RPGT as of Y2016
Holding period: date from S&P agreement until disposal date
Q: Do I have to pay income tax for disposing company shares (Sdn Bhd)?
A: Generally selling of shares is considered as a capital gain & not subject to tax.
Unless it is a Real Property Company (RPC) shares whereby you are subject to RPGT. Companies with 75% above assets in properties are considered RPCs.
RPGT Calculation
RPGT is paid as % on gains
Gains = Selling price less purchase price less allowable expenses less waiver
Allowable expenses:
- Legal fee
- Stamp duty
- Agent commission
- Advertising
- Repair & renovation
RPGT Exemption & Waiver
- Waiver of 10% or RM10k (based on whichever higher) for individuals only
- One time residential property exemption for individuals/married couples
- Gift between husband-wife, parent-child or grandparent-grandchild
Share & discuss on Taxation on Properties (RPGT) & Company Shares
Hi, if i were to transfer/dispose all the share (100%) in RPC to my kids, am I subject to RPGT? Understand that my kids will have to pay for stamp duty with 50% exemption, right? Thanks in advance.
Is the redemption of preference shares in an RPC subject to RPGT?
Hi…. if RPGt has been paid on disposal of shares via a Sale Shares Agreement (SSA) in 2012 by Company A and thereafter in 2020, Company A decides to now dispose off the land owned by it, will it be subjected to RPGT if there is a gains from the disposal of the land?
Will the RPGT paid on the disposal of the shares have any bearing on the payment of tax (if any) upon disposal of the land? Ie is there any connection?
Hi, if a company becomes an RPC on 03/06/2014, thereafter the RPC increased the paid-up capital on 09/03/2015, thereafter dispose of the RPC share. is that an impact on RPGT computation? Thanks
Hi, lets say a land owner is indebted to a company and offered to set off his debt by of transferring his land to the company by entering into a Settlement Agreement, do the land owner and the company needs to retain 3%? under RPGT Act? If RPGT applies, why is that so since this involves a cashless debt settlement arrangement. Thank you :)
Hi. I would like to know. Recently I sold a small amount of my companies share. And to my surprise, my salary was deducted. And it said PCB on my salary slip. Please elaborate.