The bad news is that if you are disposing off a property at a significant gain, you are likely to be taxed for it. But here is the good news. You will only be taxed on your net capital gains as opposed to the gross capital gain. Gross capital gains are simply calculated by taking the selling price less the purchase price.
To arrive at your net capital gains, you are allowed to subtract from the gross capital gain certain expenses (don’t forget to keep the bills!) such as:
Legal fees Real estate fees (sales commission) incurred to sell the property (typically between 2% – 3% of the selling price)
Administrative fees Expenditure incurred to maintain/upgrade the property. This can include upgrade works done the property such as renovations and interior design works
The maximum allowable deduction here is the larger of RM10,000 or 10% of the capital gain.
To read more on this topic, please goto
http://savemoney.my/real-property-gains-tax-in-malaysia/
After the Budget 2014 announcement, RPGT has been increased substantially to 30% for properties disposed within 3 years years or less (previously, it was 15% for 2 years and below and 10% for 3 years and below), 20% for properties disposed within 4 years of purchase and 15% for 5 years (previously it was 10% for both 4 and 5 years).0% RPGT for properties older than 5 years kept as it is.
The new rates will be in effect from 1st January 2014 onwards.
Foreigners can only buy properties with a minimum value or RM 1million.
RPGT at 30% for first 5 years and 5% thereafter.
To read more on this topic, please goto
http://savemoney.my/real-property-gains-tax-in-malaysia/
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