Taxation on Properties (RPGT) & Company Shares

2017-04-12T11:43:09+00:00By |Properties, Tax|0 Comments

This week we will be looking at answering a number of queries from MyPF readers-clients.

house-rpgt

 

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

rpgt-malaysia-2016

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

 

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