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RPGT (Real Property Gains Tax)
When we
sell a property, LHDN will charge the seller some taxes on the PROFIT
made.
The
quantum depends on how many years you own the house:-
<
2 years 30%
2
- 3 years 20%
3
- 4 years 15%
4-5
years 5%
>
5 years 0%
The
tax is not on sales price, but on the PROFIT made minus lawyers' fee
and renovation costs.
Tax
= a% x (*Profit- lawyers fees - renovation cost)
*Profit
= S&P price during selling - S&P price during purchase
Example:-
U
bought a house at RM100K
You
renovate it with the amount of RM20K
3
years and 6 months later, you sold it at RM150K
Lawyer's
fee is RM5K
Profit
= RM150K - RM100K = RM50K
Tax
= 15% (3 - 4 years)
Therefore,
tax
=
15% x (profit - lawyer's fee - renovation costs)
=
15% x (50K - 5K - 20K)
=RM3.75K
However,
each Malaysian is entitled to once-in-a-lifetime exemption, under
section 8. It is applied to a house you have lived on, not a house you
own as pure property. You need to proof you have lived in the house,
such as active water bill, electic bill. For clearer info, please
contact your local LHDN office.
(extracts
from hba.org.my forum)
2005
budget on the RPGT (Real Property Gains Tax)
Currently,
the option of exemption on Real Property Gains Tax (RPGT) for a
residential property is given to the husband, even if the property is
owned by the wife. To ensure equitable tax treatment, the Government
proposes that the option for RPGT exemption be given to the owner of
the residential property, irrespective whether it is the husband or the
wife. Instead of only one claim for each married couple, the Government
proposes to allow a husband and wife to each claim one property for
exemption of RPGT on a once in a life-time basis.
RGPT will not be imposed on
your property if 5 years or more.
Question:
When does the "5 years" start counting for a house bought directly from
developer?
For
example, S&P signed in 1999 and the house was completed in
2001. So, does the 2 years construction period inclusive in that "5
years"?
Answer :
The determination of the date of acquisition is either from the date of
agreement or from the completion of the sale, whichever is the earlier.
In this case, it should be from the date of your SPA with the developer.
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