Expenses incurred in acquisation, enhancement are deductable

definitely will affect things on...got good got bad la

I believe RPGT does not apply to those properties bought before a certain of years, for example only within 5 years (In previous RPGT act).

Previously after 6 years no tax but now also tax 5%.

"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."

Source:
http://biz.thestar.com.my/news/story.asp?f...84&sec=business

So no matter when you sell your property, you would still get taxed, even if you sell your 30 year old house.

This post has been edited by ahming: Oct 24 2009, 09:40 AM

I think the house price will drop a bit from now till Jan since sellers are trying to sell their house before the new rule takes effects. However, in long term, the price might go up as seller will increase the selling price to cover the tax. But 30% of tax for house being disposed within two years of acquisition is really bad for investors.

I see a flipper, not an investor.

Probably but it is also hard for a buyer to get a newly completed property from sub-sale under this scheme too. By the way, ??!! meantioned that "Expenses incurred in acquisation, enhancement are deductable" that means we can deduct all the lawyer fees, stamp duty and loan interest from the earning before tax too?

YES...

There are many version of explaination about the latest RPGT. Many also say there will only be 5% tax for within 5 years, none after that. Some others like The Star saying max 30% to min 5% tax, the limit of taxable 5 years period will be removed.

Seems is very dusty now.

My understanding is 5% fixed rate imposed on the gains regardless of the years of acquisition of said property.

Only the EXEMPTION clause under the Real Property Gain Tax Act 1976 is retained, not the mechanism of 30% for first 2 years, 20 % for 3rd year and so on.

which is the correct info now , seems like different news source give different interpretation

Wait for the Parliamentary debates, subsequent clarification and analyses/commentaries from the experts. Also, nothing is cast in stone yet ... technically. These are proposals and going forward, there could be retractions, modifications etc..

To add on, the proposal also states that RM10,000 or 10% of the gains (whichever is HIGHER) will be exempted from tax. So if you gained RM100K from selling your house, RM10K will not be taxable but the balance of RM90K will be subjected to 5% tax = RM4,500

check from the appendix 15 of the PM bajet speech, got exemption for the tax for one property sold per lifetime...meaning we can flip only once a lifetime


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I have started to feel the pressure. Most of my customers are investors cum speculators, just recieved a call from a buyer said would withdraw buying a property which already agreed.

Oh, if can deduct loan interest and other fees is not so bad for 5% but 30%, I think many people going to cry. Btw, I just paid the deposit to buy a house from sub-sale.... Anyway, I buy it for my own stay la.

This post has been edited by jarjar6666: Oct 24 2009, 05:50 PM

sound silly isn't it? anyway no clear guidleines out yet, so shall wait and see lor.
Those investors/ and speculator, need to make a break then.....

actually goodnews for those who wanted to just own a house....these "speculators" and "so-called investors" have been driving the prices so high these days...most of us are not able to afford a decent house at a decent price.....

Sorry if i stepped on somebody's tail...but the current prices of even a uglee double storey is CRAZY

This afternoon I received many calls from my stubborn owners suddenly want to sell their house, at lower price. Market has started to make adjustment.

That is the good news I am referring to in post 7.