KUALA LUMPUR: All parties involved in property ownership transfers in Malaysia must report the transaction to the Inland Revenue Board within 60 days for Real Property Gains Tax purposes.
Principal Assistant Director of the Stamp Duty and Real Property Gains Tax Operations Department Azman Muhammad stated that transactions including sales, purchases, transfers of rights, and assignments must be reported through the MyTax portal.
He emphasised that both the seller and buyer share responsibility for reporting disposal and acquisition of assets to avoid penalties under Section 29(3) of the RPGT Act.
Failure to submit the RPGT Return Form can result in prosecution with fines up to 5,000 ringgit and imprisonment not exceeding 12 months.
Azman explained that RPGT objectives include increasing national revenue, educating the public on tax responsibility, and curbing property market speculation.
He noted that capital gains are generally not taxed but require taxation in property due to high values and rampant speculative activities.
Malaysians needing genuine housing face higher prices because of property speculation, making market stabilization through RPGT necessary.
RPGT rates are calculated based on property holding periods, with rates decreasing according to ownership duration and disposer category.
Individuals selling property within the first three years face a 30% tax rate, followed by 20% in the fourth year and 15% in the fifth year.
No RPGT applies from the sixth year onwards for individual property sellers.
Details regarding RPGT rates for individuals, companies, and foreigners are available on the Inland Revenue Board’s official website. – Bernama
