This is an update from my blog post in 2011 about the Real Property Gain Tax (RPGT) in Malaysia for the current year 2012. You can go to the blog post here. That blog post explains about how does the Real Property Gain Tax in Malaysia works.
It was announced in Budget 2013 that the change for Real Property Gain Tax in Malaysia for 2013 is the addition of 5% to the current 10% RPGT for the sale of property which was bought 2 years from the date of the Sale & Purchase Agreement and the addition of 5% to the current 5% RPGT for the sale of property which was bought between 2 years and 5 years from the date of the Sale & Purchase Agreement. On the 6th year, there will be no Real Property Gain Tax levied on the sale.
As such, here is the rate which will be in force from 1st January 2013 :
Sale of property between 0 to 2 years of purchase : 15% RPGT
Sale of property between 2 to 5 years of purchase : 10% RPGT
Sale of property after 5 years of purchase : 0% RPGT
As I had advised in the blog post about RPGT in 2011, adjust your property investment accordingly.
