Chapter 7: Real Property Gain Tax

/ Disposal price Consideration Received

Less Permitted exp:
Renovation cost
Legal Fees for defending
title
Less Incidental Cost
Valuation fee
Real estate Agent’s
commission( Brokerage

Fees)
Advertising Fee
------------------------------
DISPOSAL PRICE
===================
 Consideration paid
Add Incidental Costs:
/ Acquisition price Stamp Duties
Valuation Fees
Legal Fees
Real Estate Agent’s
Commission
Advertising (seller seeking)
Interest exp on acquisition
of RP
Less:
Compensation received
Insurance recoveries
Deposit Forfeited
------------------------------
ACQUISITION PRICE
===================
 Where anti
avoidance
Conditions A bargain not
at arm’s
under S. 25
length or gift
applies

Disposal
Lump sum Disposal of RP for
disposal of
Price
a consideration
RP and other = that cannot be
assets Market values
Value
Transfer of Disposal of RP for
RP for in connection with
satisfaction loss of employment
or gratuity
of debt
payment
Conditions for exemption:
1.The individual must be
a citizen/ permanent
resident of Malaysia;
2.The real property must
be a residential property
3.The residential building
is occupied/ rented/ fit
for occupation;
4.The disposer had not
elected for the exemption
prior to this exemption.
Example:
Disposal Price 490,000
Less:
Acquisition Price 260,000
-----------
Chargeable Gain 230,000
Less: S4 exemption
(10% of CG or 10000)
Whichever higher 23,000
------------
Chargeable gain 207,000
=======
 No gain, no loss situation

Devolution of asset from a deceased person (wasiat)

– No gain, no loss situation
Allowable loss c/f
will be off set
against the
subsequent
chargeable gain
from subsequent
disposal, either in
the same year or
following YAs till
it is fully utilised
Loss Relief = Allowable Loss X RPGT rate RM
Chargeable Gain XX
-All. Loss b/f X
Loss relief is given by way of a -----
XX
deduction again the total RPGT tax -----
payable during the year. RPGT rate 30%,20%,15%
RPGT payable XX
If there is no RPGT payable to -Loss relief b/f X
deduct for the year, loss relief can -----
Net RPGT XX
be c/f to set off against future ===
RPGT payable.