Budget 2013 – RPGT Raised By 5%

In a bid to curb speculation in the real property market, following the recent Budget 2013, the government proposed the real property gain tax (RPGT) be increased 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. The new rates are effective Jan 1, 2013. There will be no tax on property disposed after the fifth year.

RPGT is currently at 10% for units sold within the first two years after purchases and would have minimal impact in curbing property market speculation as most houses would still then be under construction.

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How To Calculate Real Property Gain Tax in Malaysia

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