RPGT 2014 and Historical Rates in Malaysia

In Budget 2014 Malaysia, government increase Real Property Gains Tax (RPGT) to 30% for disposal within first 3 years. Whereas, for disposal in 3rd year, 4th year and 5th year will be charged at 30%, 20% and 15%, respectively. Apparently, RPGT Malaysia hits new record high!

RPGT historical rates from 1976 to 2014 for personal (Citizen & PR):-

Disposal in 1st year
Disposal in 2nd year
Disposal in 3rd year
Disposal in 4th year
Disposal in 5th year
Disposal in 6th year & above
1 Jan 1976 - 31 May 2003
30%30%20%15%5%0%
1 Jun 2003 - 31 May 2004
0%0%0%0%0%0%
1 Jun 2004 - 31 Mar 2007
30%30%20%15%5%0%
1 Apr 2007 - 31 Dec 2009
0%0%0%0%0%0%
1 Jan 2010 - 31 Dec 2011
5%5%5%5%5%0%
1 Jan 2012 - 31 Dec 2012
10%10%5%5%5%0%
1 Jan 2013 - 31 Dec 2013
15%15%10%10%10%0%
effective 1 Jan 2014
(Budget 2014)
30%30%30%20%15%0%

Refer to the table on above; do you notice that the RPGT has dropped to 0% from 30% and it happened twice? Could it be the same pattern happen to our next new RPGT rate, which is 0%?

ZERO PERCENT, that means no need to pay any gain tax when you sell property, regardless how long you have purchased it some more!

But, does it sound great for you?

My friend, by the time, probably the property bubble burst! Or at least we can confirm that the economics is so bad until government beg you to buy property by introducing zero tax for RPGT.

P/S: please do not take it seriously, just an assumption for fun.

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