Hi! Welcome to my blog. I am Anne from Kota Kinabalu, Sabah, Malaysia. Read more about me here. Please note that ...
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Yes. That is right.
I was surprised to read the report from the Star online today. Based on the Budget speech by the Prime Minister yesterday, I thought that a fixed tax  rate of 5% would apply to gains from the disposal of real property from 1 January 2010. Here is the screen shot of the relevant paragraph taken from the budget speech (click on the image for better view).



The Star reported that the Malaysian Government has proposed to reimpose real property gains tax (RPGT) for gains arising from property disposal.

Based on the Finance Bill, disposal within two years of acquisition will be taxed 30%; in the third year, it will be 20%; in the fourth year 15%, while disposal within five years and beyond will still be subject to 5% tax.

If these rates of RPGT are restored come January 2010, I foresee that the property market will become less attractive. As I mentioned in my earlier post, the reintroduction of RPGT will be good for the property market as it will be able to control the rising of property prices due to manipulation / speculation by certain group of people. So the way I look at it, the government has made the right move to reintroduce RPGT as it is a good tool to counter speculation.

What do you think?

Read the full report here
Property gains tax makes comeback
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Update 24 Oct 2009 : Only Five Per Cent Real Property Gains Tax Next Year, says Second Finance Minister Datuk Seri Ahmad Husni Hanadzlah
"The real Property Gains Tax for the first year is five per cent and is the same for the second, third, fourth and fifth year," he said in clarifying a news report in the business page of the Star Saturday.
Read the full report from BERNAMA

3 comments

  1. Dragon City  

    October 25, 2009 at 10:54 AM

    So what you mean is actually it is 30% and not 5%?

  2. Anne  

    October 25, 2009 at 12:15 PM

    Hi Dragon City.
    It is a fixed rate of 5%. The same rate applies for the first, second, third, fourth and fifth year. The earlier report in the star was incorrect. Please read the update from Bernama at the bottom of post.
    Thanks for dropping by and commenting :) Have a nice day!

  3. Dragon City  

    October 26, 2009 at 12:01 PM

    Thanks for the clarification. = )

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