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 The original purpose of the RPGT was to put a lid on property speculation. Today, it is still the main purpose but the RPGT also serves as a useful form of revenue for the Federal Government.
RPGT chargeable on individuals:
| Category of Disposal | Rate of Tax | | Disposal within two years after the date of acquisition of the chargeable asset | 30 per cent | | Disposal in the third year after the date of acquisition of the chargeable asset | 20 per cent | | Disposal in the fourth year after the date of acquisition of the chargeable asset | 15 per cent | | Disposal in the fifth year after the date of acquisition of the chargeable asset | 5 per cent | | Disposal in the sixth year after the date of acquisition of the chargeable asset or thereafter | NIL |
RPGT chargeable on companies
| Category of Disposal | Rate of Tax | | Disposal within two years after the date of acquisition of the chargeable asset | 30 per cent | | Disposal in the third year after the date of acquisition of the chargeable asset | 20 per cent | | Disposal in the fourth year after the date of acquisition of the chargeable asset | 15 per cent | | Disposal in the fifth year after the date of acquisition of the chargeable asset or thereafter | 5 per cent |
RPGT chargeable on foreigners
| Category of Disposal | Rate of Tax | | Disposal within 5 years after the date of acquisition of the chargeable asset | 30 per cent | | Disposal in the sixth year after the date of acquisition of the chargeable asset or thereafter | 5 per cent |
Exceptions
(i) The following are exempted from tax (for houses & other cases):
- . For individuals, the first RM5,000 or 10% of any chargeable gain whichever is greater.
. The gain on disposal by an individual who is a citizen or permanent resident of Malaysia. With one private residence during his lifetime.
. The gain on compulsory acquisition under any written law. Gifts to governments, local
authorities of charities.
. Real property transactions arising from mergers of financial institutions which were con
between 24 October 1998 and 20 June 1999.
(ii) The following are treated as disposals at the original acquisition price so that no gain arises
disposal (for houses & other cases) :
- . Transfer by way of gift between husband and wife, parent and child and grandparent an<
grandchildren taking place within 5 years of acquisition.
. A transfer of real property to a company for a consideration consisting of shares or
substantially of shares and the balance in cash.
. A transfer of real property to a company for a consideration consisting of shares or
substantially of shares and the balance is cash.
. A transfer of assets between companies in the same group with the consent of the Direct
General of Inland Revenue.
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