Exemption order on real property gains tax likely this week

The Finance Ministry is expected to come up with an exemption order on the Real Property Gains Tax (RPGT) this week to clear the confusion surrounding the RPGT proposal.

Under the 2010 Budget, the government proposed a fixed tax rate of 5 per cent on gains from the disposal of real properties effective January 1 next year.

However, based on the Finance Bill, disposals within two years of acquisition will be taxed 30 per cent, 20 per cent in the third year and 15 per cent in the fourth year, while disposals within five years and beyond will still be subjected to 5 per cent.

"As far as the Act is concerned, the rate is still there, which is 5 to 30 per cent. Exemption order has yet to be gazetted but it is coming out very soon, maybe around this week," the Finance Ministry's Under Secretary, Tax Analysis Division, Siti Halimah Ismail, said in Kuala Lumpur yesterday.
She was speaking to reporters after the 2010 Post Budget Dialogue, organised by the Malaysian Economic Association and University of Malaya's Faculty of Economics and Administration, and supported by Standard Chartered Bank Malaysia Bhd.

By Bernama