According to the proposal, say if you sell a property at RM500K in year 2010 which you bought in year 2007 at RM300K, your nett profit is RM150K (After deducting all your expenses such as agent commission, legal fees....etc). Your property gains tax will be 5% of your RM150K profit which is RM7500.
But please pay attention that you will still be liable to RPGT even after 5 years of your property acquisition. It was not taxable in the previous pratice. In this case, it has become very unfair to those owners who bought their properties in many years ago, they are obviosly not speculators. For example, one who bought a single storey terrace in Green Garden Penang 25 years ago at RM90K, he is getting old and deciding to sell in 2010, based on the market value the price could fetch RM550K.
Now, this is the best part. Will he be demanded 5% tax of his so called profit ? It is RM22,000 easy money to the government. Not to mention those who want to sell their heritage properties from their ancestors.
All this needed to be clarified further. However, the good thing is that property market is expected to be stable. Will keep you updated.
Further update. The RPGT will only be imposed to those properties sold within 5 years after the acquisition. Provided there is profit after deducting the cost like legal fees, agent commission and etc.
Thank you.
Raymond Loo
But please pay attention that you will still be liable to RPGT even after 5 years of your property acquisition. It was not taxable in the previous pratice. In this case, it has become very unfair to those owners who bought their properties in many years ago, they are obviosly not speculators. For example, one who bought a single storey terrace in Green Garden Penang 25 years ago at RM90K, he is getting old and deciding to sell in 2010, based on the market value the price could fetch RM550K.
Now, this is the best part. Will he be demanded 5% tax of his so called profit ? It is RM22,000 easy money to the government. Not to mention those who want to sell their heritage properties from their ancestors.
All this needed to be clarified further. However, the good thing is that property market is expected to be stable. Will keep you updated.
Further update. The RPGT will only be imposed to those properties sold within 5 years after the acquisition. Provided there is profit after deducting the cost like legal fees, agent commission and etc.
Thank you.
Raymond Loo
