RPGT Exemptions

Q.
List down the exemptions available under RPGT Act, 1976.

A.
Earlier post on exemption with reference to Richard Oon Hock Chye was posted here.

Exemption from RPGT

RPGT exemptions currently available are as follows:

1. Gain in respect of any disposal of a chargeable asset from 1 April 2007 until 31 December 2009

2. Gain in respect of any disposal of a chargeable asset on or after 1 January 2010 where the disposal is made after 5 years from the date of the acquisition of the chargeable asset;

3. RM10,000 or 10% of the chargeable gain, whichever is greater accruing to an individual in respect of a disposal of a chargeable asset;

4. Gain accruing to an individual who is a citizen or permanent resident of Malaysia in respect of the disposal of one private residence;

5. Gain accruing to a wife who is a citizen or permanent resident of Malaysia but whose husband is neither a citizen nor a permanent resident, in respect of the disposal of one private residence owned by the wife; and

6. Gains accruing to the Government, State Government or a local authority.

Ref:
SM Thanneermalai (2010) Real Property Gains Tax 101. Accountants Today. October, 2010. Page 16-20.

A more elaborated list is provided by MIA below:

RPGT exemptions are available in the following circumstances:

Exemptions under the RPGT Act 1976:

1. An individual will be given an exemption equal to RM10,000 or 10% of the chargeable gain, whichever is greater. Prior to 1 Jan 2010, the exemption was equal to RM5,000 or 10% of the chargeable gain, whichever was greater.

2. An individual who is a Malaysian citizen or a permanent resident will be given a once-in-a-lifetime exemption on any chargeable gain arising from the disposal of his/her private residence if he/she elects in writing for the exemption to apply to that private residence.

3. Transactions in which the disposal price is deemed equal to acquisition price (i.e. “No gain no loss” transactions) — per Para 3 Sch 2 of the RPGT Act 1976:

(a) Devolution of a deceased person’s assets to his trustee or legatee.

(b) Transfer between spouses.

(c) Transfer of assets owned by an individual, his wife or by an individual jointly with his wife or with a connected person to a company controlled by the individual, his wife or by an individual jointly with his wife or with a connected person, for a consideration consisting substantially (more than 75%) of shares in that company.