I had a relative said that LHDN withhold xx% of tax when selling a land, but he was able to claim back via lawyer after submitting some ta documents. What kind of a withholding tax is this?

Does LHDN withhold any tax (e.g. RPGT) when selling a property? Do they still do it, if the property is sold after 6 years?

https://www.hasil.gov.my/en/rpgt/real-prope...tax-rpgt-rates/

sila baca:
//www.hasil.gov.my/en/rpgt/real-property-gains-tax-rpgt-rates/

Obviously I know this.

I am asking, where does withholding tax come from? Do all sales subject to RPGT, even those > 5 years?

TS is non Malaysian or the buyer is foreigner?

got withholding tax for selling property??

Only know about RPGT

Yes, RPGT is basically a type of witholding tax. Refer to the following from iProperty:

"When to pay RPGT in Malaysia?
For locals and permanent residents who sell off property, their lawyers will retain 3% of the property’s selling price/disposal price when the purchaser pays the first deposit to buy the property for the purpose of RPGT payment. For non-citizens & foreigners, this retention rate is 7%.
Your solicitor will make the payment with necessary forms to Inland Revenue Board within sixty (60) days from the date of the sale and purchase agreement to meet the RPGT payable."

Therefore, RPGT is withold by the lawyer for LHDN. Based on my understanding, you (or your lawyer) just need to file addtional documents with LHDN basically showing proof you hold your property for more than 5 years and you can claim back the money or top up if the witholding RPGT is insuffcient to cover.

But isn't it dumb need to "claim back", when the property is already > 5 years?

For us yes. For gov no, you collect first and place the burden to proof on the seller itself. Sometimes people even forget to claim back this money. Very unlikely but it happens. Just the same with your salary PCB. Company withold it and submit to LHDN, and if you got sufficient tax relief you can claim back from LHDN. Same mechanism.

But can I confirm from those who sell property, is this really the case?

No la, I just sold my old house. As long over 5 years, no RPGT. My lawyer submit ckht form to LHDN and then it will issue notice to acknowledge for non RPGT imposed.

For TS, need to ask his relative by how it happen. No such thing for Malaysian citizen.

This post has been edited by Jingle91: Jul 10 2024, 06:01 PM

Over 5 years still got RPGT meh??

I thought just summit documents & get the some acknowledgement letter from LHDN 🤔

Now the SOP changed????

That is what my lawyer did in May. Seen like there is another universe happening beyond ours, lol

Simply change the policy & create more problems

Old one is good enough... Now more headache

wht & rpgt are 2 different things

malaysian will kena wht only if residing/tax resident overseas n sell local property

what are you asking there?
tax come from where??

from the sales profit
x% of the sales retained
paid to LHDN when CKHT submitted by lawyer.

lain belakang kira.
can claim back balance
or all depends
or sometimes need pay extra
you pay later