Yes, Happy Lunar New Year to Dario too. See you again later.

Hi Dario,

I was doing abit of read up on this exemption on the internet and it seems to me that this one time exemption is only applicable to citizen and PR....Wonder did i interpret wrongly?

Thanks.

Anjoilin,

Unfortunately, you're right. Section 8 read together with the Third Schedule of the RPGT Act specifically mentions citizens and PR only as being entitled to the exemption.

The previous position before the amendment effective Jan 1, 2010 was that all non-citizens/non-PR had to pay 5% tax on the gain for disposal after 5 years [if within 5 years, it was 30%].

After Jan 1, 2010, non-citizens/non-PR were exempted from paying any tax whatsoever for disposal after 5 years. They enjoyed the similar benefit given to citizens/PRs. The exemption was implemented across the board.

Unfortunately, Section 8 was not amended to include non-citizens/non-PR, which is quite unfair. Section 6 includes non-citizens/non-PRs as chargeable persons, but Section 8 does not. Whither the provision of equality before the law as stipulated in the Federal Constitution? Hmmmm..

Just to be sure, I'll buzz LHDN on Monday and find out the latest position. Perhaps I'm wrong and Section 8/Third Schedule has been amended effective Jan 1,2010 to include folks like you as well.

By the way, remember that in any event, you are entitled to a minimum exemption of RM10,000.00 or 10% of the gain, whichever is higher. Something, better than nothing,no?

This post has been edited by dariofoo: Feb 4 2011, 02:41 PM

Title is indefeasible but in this case, by virtue of the S&P, the developers have agreed to sell the property, title and all, to the purchasers. So it doesn't matter, at the end of the day. The developer had undertaken, in the S&P, to apply for subdivision of the master title and execute the necessary transfer forms to effect a transfer to the purchasers. They can't go back on that.

In the advice I gave, that situation was different. The new owner bought the property by way of an auction. He acquires a good title over the property from its previous owner.

The Ah Long has no right over the property. His only remedy is a civil suit against the previous owner for money due and owing. He can't challenge the new owner's title.

Hope that clarifies things,bro?

Indeed.

Tsuyoshi, the delay in replying to your query is because I can't seem to get my hands on a copy of the Malay Reservations Enactment of any State, for that matter.

Generally, the requirements around disposal of a Malay Reservation Land (MRL) is very very strict.

The developer must be a 'Malay holding' within the definition of the respective Enactment. The chargee bank must also be within the similar definition.

When it comes to purchasers, it must be strictly only those who fall under the definition of Malay. From what I remember reading ages ago, the Selangor Enactment does not give any right to dispose a MRL to a non-Malay. The Kelantan Enactment, in contrast, has a provision for disposal to a non-Malay, subject to the consent of the Ruler-in-Council. Not too sure as to the actual wording of the provision, though.

As such, the issue of blanket authority/blanket consent in such developments does not arise as it will contradict the strict requirement of the Enactment, rendering it redundant and academic.

I'm not sure if there are many developments on MRL. As far as I know, it is mostly individual lots given to individuals. A lot of MRL are in rural areas. I doubt if there are MRL in hotspots or developing areas. Correct me if I'm wrong though.

In reality, you do find certain developments with a bumi quota, probably around 30%, of a high-rise development, for example. What happens if the quota is unsold and you want to open it to non-bumis? Then that particular purchaser has to apply for consent from the state authority. You can look at the 30% as somewhat of a MRL as well, but this time, the requirement is not stringent. It can be transferred to a non-bumi as long as state authority's consent has been given.

Hi Dario,

Thanks for the reply.

Hopefully you are able to check on behalf with LHDN just to be sure.

You are right at least we are entitled to Some exemption but it will be great to have this one time exemption too as you will never know how long it will take for them to refund us back the excess tax .

Perhaps youcan help to ask them the duration for the refund?

Thanks.

Just popping-in here on this Sat morning, I think you guys really have to send hampers to Dario in appreciation of his effort in this forum.

No lawyers in Sgp would do this service for the readers of a forum.

Thanks for the info

BTW, Happy CNY!

That's it? End of discussion?

Happy CNY to you too,bro.

Hi dario..

Happy cny and thanks for your reply..

Get more idea on this already..

Great to hear that you are working at petaling street.. So that I can visit you someday.. Perhaps one day you might in bangsar ..

Rgds

im in a process of buying a house, the first time in my life, and how disappointed i was, when I read the SnP clause, clearly stating if I couldn't get the payment 90 days from SnP date, I will be charged usury/riba'/interest of 10% per annum compounded daily.

What if the banks kaw tim with developers and F up the customers? Ok that might sound super pessimistic but what if banks are SOOOO SLOWW in processing and it is not even our fault that they disburse late.

Clearly a one-sided agreement. whatever happens to customers' first? How can I trust Malaysia anymore?

Regards,

Jeg

Hi, dariofoo. I would like to ask for the extention of a leasehold land in perak. But one of the land owner currently based in oversea. According to land office, they need a surat kuasa from the owner who staying in oversea to assign his right to a wakil to sign all the documents & forms. What can i do now? Thanks.

What do you mean? Are you saying that there is a clause which provides that if you are unable to obtain a loan and thereafter ensure that the first progressive payment is released within 90 days from the date of the S&P, you would have to pay interest to the developer?

You're referring to Power of Attorney (PA) right?

1. I would advise you to consult a lawyer who can prepare a proper PA.

2. The lawyer would then courier/email it to the owner who is currently overseas and ask him to execute it before a staff at the Malaysian embassy/consulate in that country who is a notary public.

3. Once it has been executed it will be couriered back to the lawyer who will then proceed to register it at the High Court before giving it to the holder of the PA to apply for the extension on behalf of the owner who is overseas.

Huh? Am I missing something here?

Anjoilin,

Just called up LHDN and they've confirmed that the exemption is only for citizens and PRs only. Sorry,mate!

With regard to time taken to issue refund, the lady was non-committal. She said roughly 1-2 months. From experience, I can tell you that it can even take up to 6 months. It depends on the staff and the branch who's handling your file

Sifu, I have one question, not so good about this Banking law.

Okay, I have a friend which owing the Bank big sum of money for the usage of credit cards and personal guarantor for few business loans. his business ran into failure and now he no longer can afford to pay all that.

He's planning to transfer all the properties that registered under his name to his children under equal shares (by love and affection). This can be done in 3 months time and by the time the Bank gets the bankruptcy notice, the properties have already been successfully transfer.

Now my question, can the Bank still demands from the children to pay and if the children cant pay the Bank can have its hand on the properties (the properties that have been transferred by love and affection with no consideration)?