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WorksheetsWeek 14 _30 06 2021_RPGT
Total questions: 20
Worksheet time: 11mins
Real property gain tax (RPGT) is levied on any gain upon the selling of real property under the provision of the Real Property Gains Tax Act 1976.
The purpose of the property gain tax is to avoid or minimizes speculation in the property market.
It is a tax on capital gain upon the transfer of ownership of:
real property
It is a tax on capital gain upon the transfer of ownership of
shares in a real property company.
It is a tax on capital gain upon the transfer of ownership of
car and motorcycle.
RPGT rates in Malaysia were adjusted in Budget 2019, with new changes announced as part of Budget 2020.
Yes
No
RPGT Act Through The Years (1976 - 2019)
RPGT is a tax on profit. That means it is payable by the seller of a property when the resale price is higher than the purchase price.
RPGT is a tax on loss. That means it is payable by the seller of a property when the resale price is higher than the purchase price.
RPGT is a tax on profit. That means it is payable by the owner of a property when the resale price is higher than the purchase price.
RPGT is a tax on profit. That means it is payable by the seller of a property when the resale price is lower than the purchase price.
The act was first introduced in 1976 under Real Property Gains Tax Act 1976 as a way for the government to...........
limit property speculation
prevent a potential bubble
allow a potential bubble
allow speculation
Property speculation occurs when investors ‘speculate’ to earn huge profits by............
buying low
selling high
making a large return on their investment
RPGT Malaysia is a significant source of revenue for the government, with the earnings used for national development.
Yes
No
Not Sure
Earlier this year, the government once again revised RPGT rates................
giving tax exemptions to low-cost and budget homes below RM200,000
giving tax exemptions to low-cost and budget homes below RM250,000, while increasing the tax rate to 5% for properties held by Malaysian citizens for more than five years.
giving tax exemptions to low-cost and budget homes below RM250,000, while increasing the tax rate to 6% for properties held by Malaysian citizens for more than five years.
giving tax exemptions to low-cost and budget homes below RM200,000, while increasing the tax rate to 5% for properties held by Malaysian citizens for more than five years.
Who Pays RPGT?
Malaysian citizen, RPGT applies to you as long as you’ve made a profit gain from selling your properties in Malaysia.
Foreign resident, RPGT applies to you as long as you’ve made a profit gain from selling your properties in Malaysia.
Malaysian citizens and/or permanent residents who sell their property within the first five years of acquiring it will be subject to RPGT.On top of that, Malaysians will also be charged 5% in property taxes after the fifth year as according to the Budget 2019 RPGT updates.
0-3 years 30%
3-4 years 20%
4-5 years 15%
5+ years 5%
5+ years 15%
Foreigners will be charged a rate of 10% RPGT when they sell their property, five years or more after purchasing it.
0-4 years 30%
0-3 years 30%
0-5 years 30%
0-5 years 35%
0-5 years 25%
RPGT is also imposed on the disposal of shares in companies when 75% of its tangible assets involves real estate.
0-3 years 30%
3-4 years 20%
4-5 years 15%
5+ years 10%
5+ years 5%
What Is Allowable Loss?
Allowable loss can apply in circumstances where more than one property is sold by the same owner in the same tax year.
If you lose money on one sale by selling for lower than when you bought the property, you can then use that loss to offset any profit on another sale made.
So if you sell a property at RM20,000 loss, but then sell another at RM100,000 gain, your total taxable amount is RM80,000.
So if you sell a property at RM20,000 loss, but then sell another at RM100,000 gain, your total taxable amount is RM100,000.
So if you sell a property at RM20,000 loss, but then sell another at RM100,000 gain, your total taxable amount is RM120,000.
What’re Allowable Expenses?
Allowable expenses basically mean the money you’ve spent improving
Allowable expenses basically maintaining a property to retain/increase its value.
How To Calculate RPGT Malaysia?
To know the taxable amount, first calculate your chargeable gain, which is the difference between the purchase price and the sale price.
To know the taxable amount, first calculate your chargeable loss, which is the difference between the purchase price and the sale price.
To know the taxable amount, first calculate your chargeable loss, which is the difference between the market value and the sale price.
Madam Neelofa purchased a condominium for RM500,000 three and a half years ago and sold it for RM800,000. Madam Neelofa’s chargeable gain would be ...........................
RM300k
RM500K
RM800K
RM200K
RM100K
The number of applicable years (holding period) starts from the date of the property’s Sales and Purchase Agreement (SPA), and not the date of vacant possession.
Yes
No
When to pay for RPGT?
After disposal of your property, you are required to submit the RPGT return within 60 days of the disposal date.
After disposal of your property, you are required to submit the RPGT return within 30 days of the disposal date.
After disposal of your property, you are required to submit the RPGT return within 20 days of the disposal date.
After disposal of your property, you are required to submit the RPGT return within 650 days of the disposal date.
Incidental cost expenditure incurred by acquirer or disposer when acquiring or disposing of a property being:
fees paid for-profit services (surveyor, valuer, lawyer)
costs of transfer (including stamp duty)
costs of advertising in finding a seller (when acquiring)
costs of advertising in finding a buyer (when disposing of)
costs of transfer ( not including stamp duty)
Budget 2019 RPGT Change - 5% tax after 5 years for Malaysians and Permanent Residents.....
Raises more money for national spending from tax
May help reduce speculation (although property speculation is usually a short-term gain)
More tax! It means you have to pay 5% tax on profits of your sale
May slow down the housing market long-term
Can result in transfer of costs from seller to buyer with adjusted house prices
Budget 2020 RPGT Change - change of base year to 1 January 2013
Reduces potential taxable profit for homeowners who purchased a home before this date
Reduces tax intake
