Current place I'm staying is close to 5 yrs thus no RPGT if I let go. Am I still entitle for the exemption if I sold my second prop which is below 5 yrs?

its not your insurance ncb... rpgt apply to each property. as long as yoi buy it srart coint 5 year

Rpgt exemption once in a lifetime applied to Malaysian. Many are not utilising this advantage because they are keep thinking they can use it for more profit making in the future.

Yes I understand, my question is, can I use this exemption on my second unit(below 5 yrs) since my first unit already 5 yrs (no RPTG)

Question:
Each Malaysians are entitled to once in a lifetime RPGT exemption regardless of which property he/she dispose? Similar to Xccess taikor case, can he dispose his 2nd property with exemption from RPGT?

Meaning v can dispose our either 1 property without RPGT incur?

Frankly I just got to know this "RPTG tax exemption once in lifetime" not too long ago....me newbie...lol. Am surprise quite a number of my friends don't know the existence of this entitlement.

This post has been edited by Xccess: Oct 19 2013, 01:57 PM

Yes, for first time seller. Only once in a lifetime. You can google it.

if u sold your 1st property after 5 years holding, u r not suppose to pay RPGT. So it doesn't use up your 1 life time quota.
the quota only applicable in the case of RPGT is applicable

You should know the answer right.

yes, you can utilize this exemption for any property you dispose... they don't care which property, but only can use once in a lifetime (but of course the property is RPGT applicable in the first place ie. below 5 years)...
in practice, most ppl wait until they dispose the property with the biggest gain to take advantage of this, hence they keep waiting and waiting as prices keep going up...

This post has been edited by dcwhz83: Oct 19 2013, 02:03 PM

Ok got it. Thanks.

Brother, it must be residential property, not commercial, or agricultural...

yes of course... thx for the correction

I was thinking this application only apply on the first transaction be it within RPTG period or not. Rest of the bro already gave me the answer. Thanks!

Thanks for the enlightenment guys. Will use this "exemption" wisely. Noted that it is only applicable to Residential only.

Kudos for the advice given.

the 2 relevant forms that u need to acknowledge:

1. election for RPGT exemption http://www.hasil.gov.my/pdf/pdfborang/Seks...CKHT_1976_1.pdf

2. borang CKHT 3 http://www.hasil.gov.my/pdf/pdfborang/CKHT_3_1.pdf

Appreciate the info given.

How about in spa joint names case of 2 names? Can entitle for 2 properties?

Just sharing some info I have gotten from website.


Example of Malaysia Property Gain Tax for foreigners and Malaysians:

In March 2009 – you brought a condominium at MYR 580,000
In January 2013 – you sold at MYR 670,000
After 3 years, your gain will be MYR 90,000

You can deduct these expenses paid for the property:

Legal fees and stamp duty during purchase – MYR 12,760
Loan legal fees and stamp duty during purchase – MYR 11,800
Agency fee paid to dispose your property – MYR 11,500
Renovation costs paid – MYR 10,000
Legal fee paid during selling – MYR 1,500
Total expenses paid – MYR 47,560

Net gains on the property : MYR 42,400
Tax rate to pay will be MYR 42,400 x 10% = MYR 4,240
In actual fact, you only pay approximate 5% tax rate, not 10%.
There is no difference in Malaysia Property Gain Tax Rate for a foreign-owned property title name under individuals or companies.Malaysia Property Gain Tax for Foreigners

Any idea interest paid can deduct from tax?

No idea, have to dig deeper. I'm still finding more information about it. Let you know if anything comes up.

INCOME TAX RELIEF ON INTEREST OF HOUSING LOAN

this tax relief is different..

then which is the correct one boss?

There are 3 exemptions currently, not just the one-time exemption. The full details of all 3 exemptions are as follow:
(a) RPGT exemption on gains from the disposal of one residential property
once in a lifetime to individuals;
(b) RPGT exemption of up to RM 10,000 or 10% of the net gains,
(whichever is higher) from the disposal of real property by individuals;
and
© RPGT exemption on gains arising from the disposal of real property
between family members (e.g. husband and wife, parents and children,
and grandparents and grandchildren).

That means, if we use your example below, since the amount due in tax is only RM4,240, which is less than the RM10,000, there will be no tax for that too. In short, if your net gain is less than RM100k, you will not need to give any tax, for the time being, until this act is amended.

Thanks for adding in what I missed out. Much appreciated.

Rpgt tax on disposal < 5 years, question is can this deduct from rpgt, as for rental, you can deduct interest paid from income tax

interpretation of Sch 4 of RPGT Act 1967 a.k.a. Sch 4 exemption.

generally, to determine the net capital gains, you are allowed to subtract from the gross capital gain certain expenses (don’t forget to keep the bills!) such as:
• legal fees
• sales commission incurred in selling the property (typically between 2% – 3% of the selling price)
• expenditure incurred in upgrading the property such as renovations and interior design works
• note that interest paid on housing loan is NOT exempted

wef 1 Jan 2010, the maximum allowable deduction here is RM10,000 (previously RM5,000) or 10% of the capital gain, whichever is greater.

This post has been edited by aquest: Oct 19 2013, 06:43 PM

this tax relief is to reduce your yearly income tax for spa sign in certain period in 2010.
relief based on interest serve for the above spa.
max 10k per year, for 3 years only

If the property is under joined names will this rpgt exemption applicable for both at the same time or just either one only?

This post has been edited by quintesson: Oct 20 2013, 05:48 AM

Best to avoid tis scenario is sell it after 5 yrs for the current ruling.

No headache.

Do not utilize the benefit just for the sack of using it. U won't lose athg if die without using it. For my case, I stil dun hav a chance to even think bout it. Cos I dun flip.

So far I sold only one.. That time still green.. Too scare...
Now everytime I think of selling, I just rethink this incident.. Then no more selling intend

I think the exemption of 10% is on the net chargeable gain/capital gain but not on the RPGT. In this case, the net chargeable gaini/ capital gain is RM42,400 less RM10,000 (greater of 10% on RM42,400 or RM10,000) = RM32,400. RPGT will be RM3,240 (RM32,400 x 10% for disposed in 4th year prior to 1.1.2014)

This would be very interesting, if the SPA signed under joint name of two, i wonder whether both of them have to apply for the exemption or either one.

hi, anyone has the answer to his question?

1. should we avoid 2 names (husband & wife) in 1 property to enjoy once in a lifetime rgpt exemption: 1 time for husband and 1 time for wife?

2. or does the act says once in a lifetime exemption is for 1 individual (inclusive of wife/husband)?

thanks.

either one.

how if we mark up the renovation cost kaw2..?
coz this so subjective
then after minus the renovation part, need no rpgt anymore

Hi guys ,,, maybe after 2 year post only now I ask ,,,
If I've a situation as I'm currently just collected my new residential condo unit ...

And because due to worry can't paid off the monthly installments , and plans to sell off ... am I entitled to have exemption RPTG since my property just Started for installments ?
Guys appreciated to have a professional advise ...

Rpgt is bases on how long u hold the propeety since spa and not what reason you bought and sold the property.

Sometimes its not worth to use lifetine exemption if the profit is little and hence the supposedly rpgt is not much.
Might as well save it later for much higher rpgt on another property.

I.know that fact,, but problem is if sooner I don't have any holding power , it's better to sell off even don't make any profits but instead loses everything ..

So can I used the exemption RPGT once in the lifetime ?

The point is if you are worry to hold on to a property, you should sell.

Either you use the once in life time waiver of RPGT depends on you. I would have use this for the biggest gain possible.

if you incur loss what is there to tax?

Can I clarify- does the 5 year period starts from the date of SPA? Or the date of VP? Thanks

Should be SPA if I remembered correctly.

If u r selling at or below your spa price, u don't nid to pay any RPGT wei

SPA date.

Anyone know how to check the RPGT exemption application status online? Call no people pick up..very stupid..how long it takes normally to refund? Mine already half year.