MAKE sure you understand which category your gains fall under when you dispose of a property as that would determine the quantum of tax you will need to remit to the Government.
Aljeffri Dean managing partner Neoh Chin Wah said if the gains fell under real property gains tax (RPGT), depending on the period of disposal, the tax could be 0% if the property was disposed in the sixth year of purchase by an individual.
“If the seller is a company, and the property is also disposed of in the sixth year of purchase, then the tax is 5%,” Neoh said.
Neoh was speaking during a talk on Revisiting and Understan-ding RPGT at the Star Property Fair 2014 yesterday.
“If the gains from the disposal of a property comes under the income tax, then the seller, if an individual, could be taxed up to 26%.
“For a company, the income tax is between 20% to 25%,” Neoh added.
Neoh also reminded property buyers to withhold 2% of the purchase consideration and pay the amount to the Government within 60 days.
“Even if they are late by a day, there is a penalty of 10%,” he said.
Prior to Jan 2014 the RPGT was 10%, if the property was disposed of within the third to fifth year, and zero, if disposed after the sixth year.
Meanwhile, the Green Architecture in Feng Shui Perspective (Part 1) talk by Master David Koh (pic) focused on the importance of creating a green environment by stopping pollution, the production of carbon dioxide, and achieving energy balance in the atmosphere.
Koh said to survive and live in the environment, people needed to learn the art of understanding nature, mimic nature and live with nature.
“Feng Shui is about the ability to understand and mitigate these forces to enhance our living environment.”
He added that green architecture was not about planting trees on rooftops and on walls.
“This doesn’t qualify as green architecture.
“Planting trees or having gardens at the rooftop of buildings have got nothing to do with renewable energy,” he said.
He added that although the plants might reduce the building temperature, they also added more weight to the building.
“This means you have to add more concrete and do more piling, buy more steel and more cement. Thus, increasing carbon dioxide emissions,” he said.