23/06/2023
Do you know what EXPENSES ALLOW under Malaysia RPGT?
(你知道在马来西亚房地产税下可以扣除的有哪些费用吗？)
According to Real Property Gains Tax Act 1976, RPGT is Capital Gains Tax chargeable on gain made from the sale of real property, where the sale price is higher than the purchase price.
The incidental costs incurred in disposing of the property allow to deduct from chargeable gain to calculate the RPGT are summarized as follows: -
1) Legal fees, accounting fees, surveyor’s fees, etc.
2) Real estate commision (sales commission)
3) Administrative fees
4) Repair or renovation to maintain or upgrade the property condition (e.g interior design, renovations,..)
5) Cost of preserving or defending one’s title to, or to a right over the asset
6) Cost of advertising to make the disposal
During the tabling of Budget 2020, an RPGT amendment was made to provide some relief to property sellers – it was announced that for the calculation of property gain tax of real properties purchased before 2013, the Government will use the market price on 1st January 2013 as the initial point of valuation. Previously, the base year was set at 1 January 2000. As RPGT is charged on the profit made from the sale, a later base rate would mean a lower calculated profit, thus reducing the property seller’s tax burden.
