No more RPGT for properties sold after 5 yrs of purchase in Malaysia
No more RPGT for properties sold after 5 yrs of purchase in Malaysia
08:53, December 24, 2009
Malaysian Prime Minister Najib Razak announced on Wednesday that the Real Property Gains Tax (RPGT) of 5 percent will only be applied to properties sold within five years of purchase.
This implied that a real property seller would not incur the tax if he sold his real property after five years from the date of purchase, said Najib at the swearing-in ceremony of the Federation of Chinese Associations Malaysia (Hua Zong).
By making the decision after receiving appeal from Hua Zong and other industry players, Najib said the Malaysian government would forgo tax revenue amounted to 200 million ringgit (57.14 million U.S. dollars) a year.
The RPGT of 5 percent was announced in the 2010 Budget of the country in October 2009. It was aimed to broaden Malaysia's tax base to finance various development projects and reduce the physical deficits in Malaysia.
With the RPGT applied to less real property sellers, Najib hoped that the move would drive the real estate sector to grow at a speedier rate next year.
Meanwhile, Najib said hotel owners reinvesting in the refurbishment, renovation or expansion of their premises in next five years would receive 60 percent allowance on the extra investment made.
Najib said this was to encourage the hotel owners to tap the great potential in the country's tourism industry, adding that Malaysia was expecting more than 22 million tourist arrivals in the country this year.
Source: Xinhua
08:53, December 24, 2009
Malaysian Prime Minister Najib Razak announced on Wednesday that the Real Property Gains Tax (RPGT) of 5 percent will only be applied to properties sold within five years of purchase.
This implied that a real property seller would not incur the tax if he sold his real property after five years from the date of purchase, said Najib at the swearing-in ceremony of the Federation of Chinese Associations Malaysia (Hua Zong).
By making the decision after receiving appeal from Hua Zong and other industry players, Najib said the Malaysian government would forgo tax revenue amounted to 200 million ringgit (57.14 million U.S. dollars) a year.
The RPGT of 5 percent was announced in the 2010 Budget of the country in October 2009. It was aimed to broaden Malaysia's tax base to finance various development projects and reduce the physical deficits in Malaysia.
With the RPGT applied to less real property sellers, Najib hoped that the move would drive the real estate sector to grow at a speedier rate next year.
Meanwhile, Najib said hotel owners reinvesting in the refurbishment, renovation or expansion of their premises in next five years would receive 60 percent allowance on the extra investment made.
Najib said this was to encourage the hotel owners to tap the great potential in the country's tourism industry, adding that Malaysia was expecting more than 22 million tourist arrivals in the country this year.
Source: Xinhua
1 comments:
- Ricard said...
- Good news!
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