The Real Property Gains Tax Guidelines 2023 (2023 Guidelines”) incorporate and demonstrate the legislative changes introduced to RPGT Act 1976 which includes the following:
B = total number of issued shares deemed to be a chargeable asset in relation to shares deemed to be chargeable assets
under Paragraph 34 or 34A of Schedule
C = ten thousand
a. The 2023 Guidelines stated that the grant of irrevocable PoA for valuable consideration is a “disposal” as there is an “ assignment”.
Generally, disposal date = date of PoA granted to Donee (recipient of PoA)
disposal price = market value / consideration given for the grant of PoA
b. The ascertainment of whether the interest or right in or over an asset has been granted to the Donee will depend on the
terms and conditions of the PoA.
Several key explanations of The 2023 Guideline are as follows:
Permitted Expenses [subparagraph 5(1)(a) and 5(1)(b) of RPGT Act 1876]
The following costs incurred in relation to the disposal of the property can be deducted for the calculation of RPGT:
a. Expenses incurred wholly and exclusively on the property, at any time after the acquisition of the assets or on behalf of the disposer for the purpose of enhancing or preserving the value of the property such as expenses reflected in the condition or nature of the property at the time of disposal;
b. Expenses incurred wholly and solely in securing, preserving, maintaining or defending ownership or rights over the property after the acquisition of the property; and
c. Incidental cost incurred during acquisition and disposal of the property.
Date of Disposal and Return of Assessment
The acquirer and disposer are required to submit an RPGT return within sixty (60) days from the date of disposal of the property as stated in the written agreement of the disposal.
In the absence of a written agreement, the date of disposal shall be taken as the earlier of full payment of the purchase consideration or the date when all things which are necessary for the transfer of ownership of the real property under any written law have been done. Where the disposal is subject to approval from the Government or State Government, the date of disposal is the date of such approval or if the approval is conditional, the date when the last condition is satisfied.
Payment by disposer
The disposer is required to settle the balance of RPGT payable within thirty (30) days from the date the notice of assessment is issued.
For further information, kindly click HERE.
Tax consulting is the core service of ANC Group. Our tax professionals provide clients with comprehensive tax support and guidance. We offer tax consulting and compliance services for expatriates, entrepreneurs, and listed and non-listed companies.
Our tax consulting services include business tax, transaction tax, personal tax, and corporate income tax. We don’t just guide you in interpreting and applying complicated taxation rules, but to explore new opportunities and business trends.
We keep you abreast with Malaysia tax updates and any changes in the local regulations.
We work closely with industry specialists, authorities, and associated professionals within ANC Group to provide the best-in-class integrated tax planning solutions. ANC specialists coordinate the accounting and taxation services to bring your business to success.