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.

More like knee jerk effect.

IPOH:The real property gains tax, effective Jan 1 next year, is only 5% irrespective of the year when the property is disposed, says Second Finance Minister Datuk Seri Ahmad Husni Hanadzlah.

“The real property gains tax for the first year is 5% and is the same for the second, third, fourth and fifth year,” he said when clarifying a news report in the business page of The Star yesterday.

He said the real property gains tax as announced by Prime Minister Datuk Seri Najib Tun Razak when tabling the 2010 Budget in Parliament on Friday provided exemption for the sale of a residential property for the first time and transfer of properties among family members like father to children.

Star’s BizWeek had reported that the Government proposed to re-impose the real property gains tax for monetary gains from property disposals.

The report said that based on the Finance Bill, disposal within two years of acquisition would be taxed 30%, 20% in the third year and 15% in the fourth year while disposal after five years and beyond would still be subjected to 5%.

On the non-payment of bonus for civil servants, Ahmad Husni said the country’s financial situation did not allow for bonuses to be given out.

He was responding to cries of disappointment in the civil sector over the RM500 special contribution given out only to officers in Grade 54 and below instead of a bonus across the board.