KUALA LUMPUR (Oct 11): The base year for the Real Property Gains Tax (RPGT) has been revised to Jan 1, 2013 for assets acquired before the date, from Jan 1, 2000 previously.
During the tabling of Budget 2020, Finance Minister Lim Guan Eng said this was done in response to the public's feedback on the capital gains tax, which is imposed on profit earned by homeowners and businesses by selling property.
The shifting of the base year for the RPGT translates into lower tax payment, given the nature of appreciating property prices.
Now that the base year has been shifted to Jan 1, 2013, sellers that intend to dispose of their property next year will have to pay tax based on the difference in the value of their property between 2013 and 2020, a figure smaller than the difference in price between 2000 and 2020.
In Budget 2019, the government raised the RPGT rate for the disposal of property held for more than five years by companies, non-citizens and non-permanent residents to 10%, from 5% previously.
For Malaysian citizens and permanent residents, the rate was raised to 5% from 0%.