Hi bossku,
Not enough points here. Do add on.

1. Property holding period?
2. Purchase price?
3. Free of encumbrances?
4. Purpose? So brother can own the property for own stay? So brother can own and sell in near future? So brother can sell the property and get the cash to invest in other places? OR???

Piece of advice first before commenting anything, don’t be cent wise ringgit foolish. Cheers.

Ok boss. Like this baru can give suggestion mah.

Method 2 obviously cannot pakai one. Too many unforseen circumstances. Lazy to explain also.

If your main concern is to get the prop under own family NOW without having to worry about future unforseen events, then i would suggest using Method 1. Cost of RPGT and stamp duty is small cost compare if your aunty dont get the prop transfer to your family in the future.

If die die want to save cost, and not urgency to transfer the prop back then I would suggest using below:

1) Request your aunty to give a PA to your father/brother/you. PA to be prepare by lawyer and registered.

2) Request your aunty to surrender the land title to PA holder or your lawyer.

3) Hold the property as long as you want until e.g. say 5 years, then only use the PA to transfer the property back to your family or buyer (if want to sell to liquid cash). Save taxes on RPGT. But stamp duty will be expensive a bit since value of property increase. But compare to tax saving of 25% RPGT with stamp duty, it would be logical to do so. Minimal cost.
*assuming you will not be using your aunty RPGT exemption for once in a lifetime, which will be unfair to her. (My thought only)

4) A full PA has the power to receive money on behalf of owner, sell, charge, pay taxes etc. As if the PA holder is the owner itself.

Note: Optional
*extra precaution for step 2.
To secure land title and deter any fraud in future, use the PA to “charge” the land to your brother or any other family member for a sum e.g. say 50k or 100k. Then enter a caveat against the land title.

All the above, is assuming that if u transfer the property now, u have to pay more than say 50k RPGT, then the above would be logical choice to save cost and sell later. If the RPGT is only less than say 10k, better use Method 1 without the need to do what Ive suggest earlier.

The above is only my suggestion and what I would do if I were in your shoes. 50k for me is justifiable to use the above method and 10k is not.

Anyhow, do consult your lawyer for more technical advice.

600k MV (LHDN will deem MV as Disposal price, even though no SPA).
Your dad purchase the property only 100k (Acquisition price) 2 years ago?

500k gain x 30% (less than 3 years disposal) = 150k RPGT leh.

I see. Typo. You mentioned 2 years ago.

The furthest valuation date will only be Year 2000. If your property is bought 1988 say 100k, and if year 2000 is 120k, then 120k is your acquisition price. Save some minor amount in RPGT.

It is very much up to you. Like I mentioned earlier on, if you don't want any unforeseen circumstances in future and able to afford all the cost, by all means go ahead. Otherwise, you can consider my suggestion in my earlier post, but do consider the cost for legal fees for PA and other necessary documents.

All disposal is subject to pay RPGT. If the disposal is by way of LOVE AND AFFECTION (balasan kasih sayang), then the disposal price is deemed to be the MARKET VALUE of the property there and then (although the transfer is no gain no loss). However, our kind government gives only exemption for L&A IF the transfer is between :

• Husband & Wife,
• Parents & Children,
• Grandparents & Grandchildren

Other parties using L&A transfer is STILL subject to RPGT, which LHDN value the property based on the MARKET VALUE for PELUPUS (although no gain).

That is why during disposal time, all parties fill in CKHT form which one need to provide supporting documents to prove that one is eligible for RPGT exemption (like parents & children).

Edit:-
Of course last year and before years, if the duration is >5 years, any transfer (With SPA, without SPA, Love and affection etc) does not have to pay RPGT.

But now it is different. >5 years individual need to pay 5% RPGT, hence those who are not exempted from RPGT exemption, are subject to pay RPGT.


You sure relative transfer does not have RPGT? You done any sort of related transfer before?

This post has been edited by edyek: Jul 8 2019, 08:43 AM