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- “Prosecution action can also be taken against those who fail to submit the RPGT return form, with fines of up to RM5,000 and imprisonment not exceeding 12 months, or both.”
KUALA LUMPUR (Sept 9): Both parties involved in any property ownership transfer transactions in Malaysia are required to report to the Inland Revenue Board (IRB) within 60 days from the date of transaction for real property gains tax (RPGT) purposes.
The IRB's principal assistant director of the Stamp Duty and Real Property Gains Tax Operations Department, Azman Muhammad, said transactions such as sale and purchase, transfer of rights, transfer of ownership and assignment of property, must be reported through the MyTax portal.
“It is the responsibility of the disposer (seller) and acquirer (buyer) to report the disposal and acquisition of assets to the IRB. Some do report, but late. If reported late, a late penalty will be imposed under Section 29(3) of the RPGT Act.
“Prosecution action can also be taken against those who fail to submit the RPGT return form, with fines of up to RM5,000 and imprisonment not exceeding 12 months, or both,” he said during Bernama Radio’s Klinik Cukai programme on the subject.
Azman said among the objectives of the RPGT are to help increase national revenue, educate the public on tax responsibility, and curb speculation in the property market.
“The RPGT is a tax imposed on capital gains. Generally, capital gains are not taxed; however, in this case, exemption should not be given due to the high value involved and rampant speculative activities.
“Malaysians who genuinely need homes are forced to buy at higher prices due to speculative activities in property sales. Therefore, the government believes that stabilising the property market through the RPGT is necessary to assist the people,” he said.
Azman said RPGT rates are calculated based on the holding period of the property, with the rate decreasing according to the duration of ownership and depending on the disposer category.
For example, he said individuals who sell property within the first three years will be subject to a relatively high tax rate of 30%, followed by 20% in the fourth year, and 15% in the fifth year.
From the sixth year onwards, individuals selling property are no longer subject to the RPGT.
Details of RPGT rates for other categories, including individuals, companies and foreigners, can be checked on the IRB’s official website at www.hasil.gov.my.
As Penang girds itself towards the last lap of its Penang2030 vision, check out how the residential segment is keeping pace in EdgeProp’s special report: PENANG Investing Towards 2030.
