Hi guys, I was hoping if someone could help answer my question in regards to RPGT.

Bought a property 2 years ago i.e. SPA 450k (rebate 10% down payment) loan 90% and I got an offer 450k now to sell. So the question is RPGT is base on the SPA value which is 450k or 405k? Do I need to pay RPGT 30% of the 45k variance on the rebate from developer?

You bought SPA 450k, sell 450k. No profit so RPGT is not applicable.
Don't forget to deduct the legal cost, agent commission, renovation cost, etc. from your selling price to have a nett gain to calculate RPGT.

Thanks bro.. meaning I don't need to bother about the 10% rebate initially I got from the developer? But actually the 45k not enough to cover like you said commission, legal, interest paid, etc.. 😂

10% rebate is the kangtao given by developer to attract you buy their property. It's between the developer and you only. End of the day, SPA price is the main reference when buying/selling property.
If you're selling 45k, you're actually selling at a loss. Make sure you keep all documents after selling, just in case LHDN decides to 'interview' you.

consider your loan agreement have any lock in period, it may involved some extra fee example penalty if you not following the contract. But yeah, its depend on SPA. So not rpgt for your case

What folks here said was usually true. LHDN followed the SPA price and did not look into the discount factor. But i personally know of a case whereby LHDN knew of the discount factor and charged RPGT on the seller. It is my experience that LHDN has gotten way smarter and if the project was under any government stamp duty waiver scheme whereby the government mandated that the developer had to give discount OR somehow developer declared to the LHDN that they gave discount so as to lower their income tax, you will get whacked with RPGT on the 45k profit you made (less other deductibles). So best of luck, hopefully you won't get fined for not paying the retention sum...

Can you include all the costs above that were incurred at the point of purchase into the "net buying price"?

Or costs can only be factored in at the point of selling?

Why not both times?

This post has been edited by contestchris: Sep 15 2023, 10:07 PM

yes. u need to pay rpgt 30% on the 45k.

last time some LHDN branch will check.

now everything is online, when developer give u discount, LHDN will also know.

even in the forms that u submit (CKHT1A) they will ask you to declare net price or list out the discount received.

you may try putting it as 450k and try your luck, but legally u need to pay rpgt on your profit of 45k.

However, u can deduct your legal fees, stamp duty, agent fee, renovation costs from the 45k profit.

loan interest, loan legal fees stamp duty (depend on branch), bank lock in penalty cannot be deducted.