Disposal Of Asset Under The Real Property Gains Tax Act 1976

In addition the rpgt act has been further amended by the finance act to provide that the market value of the property as at 1 january 2000 will be used as the acquisition price in calculating the real property gains tax for the disposal of chargeable assets that were acquired before the year 2000.

Disposal of asset under the real property gains tax act 1976. What most people don t know is that rpgt is also applicable in the procurement and disposal of shares in companies where 75 of their tangible assets are in properties a k a. The rate in part ii of schedule 5 refers to the rate of real property gains tax which are applicable where the disposer is a company. This tax is provided for in the real property gains tax act 1976 act 169. The tax is levied on the gains made from the difference between the disposal price and acquisition price.

Real property means any land situated in malaysia and any interest. Based on the real property gains tax act 1976 rpgt is a tax on chargeable gains derived from the disposal of property. Under the real property gains tax act 1976 rpgt act an rpc is a controlled company which the defined value of its real property or shares in another rpc or both is at least 75 of the value of its tangible assets. Although capital gains are generally not taxed in malaysia one exception to this is the gains arising from the disposal of either real property or shares in a real property company rpc.

A chargeable gain is a profit when the disposal price is more than the purchase price of the property. Real property companies rpc.