RPGT: A Practical View on Disposing and Acquiring Property in Malaysia by both Malaysian and Foreigner

Abstract

Real Property Gains Tax Act 1976 (hereinafter referred to as “the RPGT Act”) has been gazzated on 25 March 1976 and come to its enforcement in Malaysia. The purpose of the RPGT Act is to provide the Inland Revenue Board with the relevant guidelines on the imposition, assessment and collection of a tax on gains (hereinafter referred to as “the RPGT”) derived from the sale and purchase or disposal and acquisition of immovable properties in Malaysia. While for this Article, the Stamp Act 1949 (hereinafter referred to as “the Stamp Act”) governed payment of stamp duty in relates to the acquisition of properties in Malaysia. Under both the Stamp Act and the RPGT Act, taxes will be imposed for selling/disposing of properties in Malaysia.

This Article aimed to focus on the RPGT and stamp duty that arises in acquiring property in Malaysia either by Malaysian citizens and/or foreigners by way of Sale and Purchase Agreement, Deed of Gift or inheritance by Will hoping to reward the readers to have a basic understanding of the said issues.

Keywords: Real Property Gains Tax Act 1976, Stamp Act 1949, Sale and Purchase Agreement, Deed of Gift, Will, Disposal and Acquisition of properties in Malaysia, Malaysian and Foreigner