"The Real Property Gains Tax for the first year is 5 per cent and is the same for the second, third, fourth and fifth year," he reportedly said on Saturday.
In a statement released from Putrajaya yesterday, Ahmad Husni reiterated that in the 2010 Budget, the fixed 5 per cent tax to be imposed on the gains from the sale of property is irrespective of the holding period and the category of the owner.
This rate of 5 per cent will be implemented through the Real Property Gains Tax (Exemption) Order 2009. This Order will be gazetted as soon as possible and is effective January 1, 2010.
Therefore, the current rate of RPGT, which is higher than 5 per cent as in Schedule 5 of the Real Property Gains Tax 1976, will no longer be applicable.
The Second Finance Minster said there are three circumstances where the property owner is exempted from the 5 per cent gains tax.
The first is where the level of exemption is increased from RM5,000 to RM10,000 or 10 per cent of the chargeable gains.
The second, is when the property sale are gifts between parent and child, husband and wife, grandparent and grandchild. And finally, when the disposal of a residential property is a once in a lifetime transaction.
By Business Times
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