KUALA LUMPUR: Parties involved in property ownership transfers in Malaysia must report to the Inland Revenue Board (LHDN) within 60 days for Real Property Gains Tax (RPGT) purposes.
LHDN principal assistant director of the Stamp Duty & Real Property Gains Tax Operations Department Azman Muhammad said transactions such as sale and purchase, transfer of rights, transfer of ownership and assignment of property must be reported through the MyTax portal.
“It is the responsibility of the disposer (seller) and acquirer (buyer) to report the disposal and acquisition of assets to LHDN.
“Some do report, but are late. If reported late, a late penalty will be imposed under Section 29(3) of the RPGT Act.
“Prosecution can also be taken against those who fail to submit the RPGT Return Form, with fines of up to RM5,000 and imprisonment not exceeding 12 months, or both,” he said during Bernama Radio’s “Klinik Cukai” programme on the subject of RPGT.
Azman said the RPGT was aimed at helping increase national revenue, educate the public on tax responsibility and curb speculation in the property market.
“RPGT is a tax imposed on capital gains. Generally, capital gains are not taxed. However, in this case, exemption should not be given due to the high value involved and rampant speculative activities.
“Malaysians who genuinely need homes are forced to buy at higher prices due to speculative activities in property sales. As such, the government believes that stabilising the property market through RPGT is necessary to assist the people,” he said.
Azman said RPGT rates were calculated based on the holding period of the property, with the rate decreasing according to the duration of ownership and disposer category.
For example, he said individuals who sell property within the first three years would be subject to a relatively high tax rate of 30%, followed by 20% in the fourth year and 15% in the fifth year.
Details of RPGT rates for other categories, including individuals, companies and foreigners, can be checked on LHDN’s official website, www.hasil.gov.my.
