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 is paid as % on gains
Gains = Selling price less purchase price less allowable expenses less waiver
- Legal fee
- Stamp duty
- Agent commission
- 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