VALUATION FOR

FURTHER APPEAL

FLOW CHART

A person aggrieved by an assessment made on him may appeal to the Special Commissioner. RPGT EXEMPTION With effect from 1 April 2007, rPGT would not be imposed on gains made from the disposal of real property. The real Property Gains Tax Exemption Order was gazetted as P.U. (A) 146 on 1 April 2007, which excludes the application of all the rules of the real Property Gains Tax Act. With this order, disposers and acquirers would not have to file the CKHT 1 and CKHT 2 forms to the IrB for disposals dated 1 April 2007 and thereafter. The date the sale and purchase agreement was signed or the completion date if the agreement was a conditional contract, or the execution date if there was no sale and purchase agreement signed, shall be regarded as the disposal date of the property.

REAL PROPERTY GAINS TAX

Client/ Lawyer

RPGT Unit (IRB)

JPPH Valuation Process Within 14 Days

RPGT Unit (IRB) Issues Notice Of Payment FOR FURTHER INFORMATION PLEASE CONTACT: Valuation and Property Services Department Ministry of Finance Malaysia Level 9, Perbendaharaan 2 No. 7, Persiaran Perdana, Precinct 2 62592 PUTrAJAyA Telephone Fax : 603-8886 9000 : 603-8886 9001

VALUATION AND PROPERTY SERVICES DEPARTMENT MINISTRY OF FINANCE MALAYSIA

Client/ Lawyer

http://www.jpph.gov.my

Excellent Service Our Commitment

JD123801PNMB., K.L.

eal Property Gains Tax (rPGT) is a tax levied by the Inland revenue Board (IrB) on chargeable gains derived from the disposal of real property. This tax is provided for in the real Property Gains Tax Act 1976. The tax is levied on the gains made from the difference between the disposal price and acquisition price. DISPOSAL PRICE The disposal price is the amount of money, or the value of consideration in monetary terms obtained from the disposal of any asset, less: The cost or expenditure incurred in upgrading or increasing the value of the asset; The cost or expenditure incurred at any time after the acquisition of the asset by the purchaser to determine, maintain or defend his right over the asset; and The cost incurred by the vendor in selling the asset. ACQUISITION PRICE The acquisition price of an asset is the amount or value of the consideration in money or monies worth paid or given for the acquisition of the asset (together with the incidental costs of acquisition) less: Any sum received by way of compensation for any kind of damage or injury to the asset; Any sum received under a policy of insurance for any kind of damage or injury to or the loss, destruction or depreciation of the asset; and Any sum forfeited as a deposit made in connection with an intended transfer of the asset.

RATE OF TAX The rate of tax as per Schedule 5 the Act are provided as follows: rate of tax
Citizens & Permanent residents * Companies * NonPermanent residents / Non-Citizens **

Disposal in the fifth year after the date of acquisition of the chargeable asset. Disposal in the sixth year after the date of acquisition of the chargeable asset or thereafter.
*

5%

5%

30%

Disposal within two years after the date of acquisition of the chargeable asset. Disposal in the third year after the date of acquisition of the chargeable asset. Disposal in the fourth year after the date of acquisition of the chargeable asset.

Nil

5%

5%

30%

30%

30%

This rate of tax is applicable to disposals on or after 27 October 1995.

* * This rate of tax is applicable to disposals on or after 17 October 1997.

20%

20%

30%

JPPHS ROLE JPPH determines the market value of the property disposed or acquired as requested by the IrB. JPPHS CLIENTS CHARTER All real Property Gains Tax valuations shall be reported within 14 days of receipt by the office. OBJECTIONS ON VALUATIONS Any objection on the valuation must be addressed directly to the IrB and a copy sent to JPPH.

15%

15%

30%