Written by Fatin Mohammad Ismail
Introduction
This article aims to list out the key changes made to the Real Property Gains Tax Act 1976.
Amendments and additions to the Real Property Gains Tax Act 1976
These amendments come into force on 1 January 2022.
- Amendment of Section 21B which states that for companies, where the property disposed is three years after the acquisition date, the acquirer shall retain the sum not exceeding 5% of total value of price paid (whichever is less). For individuals, the acquirer shall retain the sum not exceeding 7% of total value of price paid (whichever is less).
- The penalty for leaving Malaysia without payment of tax, sums or debt is amended from a maximum of RM5,000 to between RM200 and RM20,000.
- Insertion of a new section which states that every person shall use the tax identification number assigned to them.
- The formula for calculating the exemptions is replaced with the following formula:
(a) relating to the disposal of real property — A — x C B where A is part of the area of the chargeable asset disposed; B is the total area of the chargeable asset; C is ten thousand; or ten per cent of the chargeable gain, whichever is greater; (b)relating to the disposal of shares — A — x C B where A is the number of shares deemed to be a chargeable asset under paragraph 34 or 34a of Schedule 2 disposed; B is the total number of issued shares deemed to be a chargeable asset in relation to shares deemed to be chargeable asset under paragraph 34 or 34a of Schedule 2; C is ten thousand; or ten per cent of the chargeable gain, whichever is greater. |
Published on 31st January 2022
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