In 1976, the Real Property Gains Tax (RPGT) Act was introduced to contain speculative activities in the real property market which had led to spiraling prices. The Act featured progressively-stepped tax rates corresponding to the holding period: the longer the property was held before disposal, the lower the tax rate. If the property was held for more than five complete years, the speculative motive was deemed not prevalent, therefore RPGT would be zero-rated.

With economic development and the rise of the middle class in Malaysia, there was upward mobility and ordinary citizens could afford to trade up to better residential properties. Hence, the once-in-a-lifetime exemption for a residential property was inserted so that citizens, as they improved their station in life, did not have to suffer RPGT on the disposal of their first/earlier homes.

Therefore, when first enacted, the RPGT Act was not primarily meant to be revenue-generating tax legislation: it was intended to curb the speculative activities in the property market. It is therefore crucial for companies to understand its scope, applicability, mechanism and reliefs to ensure that it is properly accounted for.

Note: pricing is customised, contact us for more information.

0.5 day                  Classroom/virtual

Target audience

• Finance directors
• Tax controllers
• Senior management
• Finance and tax managers/executives
• Financial analysts
• Regulators, academicians and accountancy students

Objectives

This module provides better understanding of the applicability of RPGT, chargeability of RPGT and other exemptions and reliefs provided under the Act.

Outcome

By the end of the lesson, participants should be able to understand the meaning of RPGT, the chargeability of RPGT, the treatment of gifts and various other topics.

Agenda

• Basic principles
• Definition of real property
• Determination of acquisition and disposal price and date of disposal
• Chargeable gain
• Allowable loss
• Circumstances where disposal price equals acquisition price
• Exemptions

Professional associations recognising PwC CPE points

Not applicable

HRDF claimable

Not applicable

Available in

Malaysia