Real Property Gains Tax (RPGT) 2014 Malaysia Part 1

RPGT is a tax imposed on gains from disposal of all types of properties such as residential and commercial buildings, land and shares of real property companies. RPGT is imposed on the net gains from disposal of property after deducting the following costs:-

1. Acquisition price
2. Stamp duty
3. Legal fees
4. Renovation costs
5. Commission for sales and administrative payments

For Malaysian citizens and permanent residents, RPGT is exempted for the disposal of one residential property once in their lifetime.

Further, RPGT is also not imposed on gains from disposal of property between:-

• Husband and wife
• Parents and children
• Grandparents and grandchildren

The current RPGT rates vary from 0% to 30%, depending on the holding period. The holding period refers to the period between the acquisition date and the disposal date of the property.

To further curb speculative activities, the RPGT rates on disposal of properties and shares in real property companies effective 1 January 2014 shall be as follows:-

掌握房產投資技巧‧回酬可期

產業基本份為興建中與建成單位兩種，投資的風險，主要包括工程未能在預定的時間內完成、移交鎖匙後面對不能出租與出售的問題，或者是出租的租金偏低，以及轉售價達不到原先購買的價格等等。

如果購買已建成的房屋，有些時候，價格已經倍增，投資的回酬可能會被削弱，若購買這類型單位，應該三思。

投資產業可以帶來一定的回酬，不過，投資也有可能會失利，因此投資前最好是能做好功課，或是尋求行內人的意見，然後才做決定，這樣會比較妥善。

以上例子僅供參考，第二個例子的投資者，如果有將單位出租，可能不至於倒賠，至少租金收入可以用來償還部份的銀行分期付款及管理費，單位丟空的原因可能是產業所在地點欠佳，很難租出去或物色到理想的租戶。

此外，第二個例子也反映了一個事實，轉手價與購買價比較，顯然未取得可觀漲幅，增值空間似乎不大，加上業主沒有堅持過了貸款的鎖定期，在提前償還貸款的情況下需面對罰款，以致投資失利。

** The second example is more suitable for my current situation as I am now investing in a under-construction project - Condominium .

I do not have to pay for the deposit as I am buying the unit during soft-launch , there was 10 % discount given ( excluded the additional car park lot that I purchased - which I need to pay 10 % -- RM 900 ).

Currently I am serving the interest only, to reduce the total amount that I have to spend on this investment.

I have 2 option :

a) To sell the unit once completed ; whereby I need to bear the penalty cost of Lock In Period .

b) To rent the unit until it pass the Lock In Period .

I have not make any decision right now as it is still too early . Option 1 will be the first choice if the property price appreciate a lot .