This is an additional tips for RPGT that we discussed it in the early blog post. The RPGT is only imposed on net gains after deducting all costs involved such as the purchase price, renovation cost, legal fees and stamp duty. The government increased RPGT (Real Property Gains Tax) to 15% from the current 10% on all properties sold before two years from the date of purchase, and to 10% from 5% for properties sold between the third and fifth year in the recent budget.
Real estate property owners who are not profit motivated and not involved in speculation are eligible for RGPT exemptions on these accounts:
- RPGT exemption on gains from the disposal of one residential property once in a life time to individuals (citizens and permanent residents);
- RPGT exemption up to RM10,000 or 10% of the net gains, whichever is higher, from the disposal of real property by individuals (citizens, permanent residents and non-citizens); and
- RPGT exemption on gains from disposal of real property between husband and wife, parents and children, grandparents and grandchildren.