Friday, December 25, 2009

RPGT Calculation

I have gone through 2010 Budget commentary and tax information. I would like to share with you by taking few examples the likely tax implications of RPGT re-imposed, which I think it is helpful to understand.

Example 1
Disposal of property which was purchased prior to exemption period of 1 April 2007 to 31 December 2009.

AA Sdn Bhd bought an apartment on 24 Feb 2007 (prior to exemption period) for RM 240,000 and sold the apartment on 4 February 2010 for RM 300,000.
                                        RM
Disposal price                        300,000
Less : Acquisition price             (240,000)
Chargeable gain                       60,000 


RPGT payable @ 5%                     3,000






Example 2
Disposal of property which was purchased during the exemption period.

Ah Keng bought a bungalow on 1 April 2008 (during the exemption period) for RM 1,200,000 and sold the bungalow on 9 September 2011 for RM 2,500,000.
                                              RM
Disposal price                             2,500,000
Less : Acquisition price                  (1,200,000)
Chargeable gain                            1,300,000

Less : Schedule 4 exemption
       10% x RM1,300,000 or RM 10,000
       (whichever is greater)               (130,000)
                                            1,170,000

RPGT payable @ 5 %                          58,500






Example 3
Utilisation of tax relief from disposals made prior to 1 April 2007 against tax assessed on property sold after 31 December 2009.

John has 2 shop houses bought on 1 Jan 2000, one of which was sold on 13 September 2006 and the other was sold on 18 Jan 2010.

(a) Sale of Shop house A on 13.9.2006
                                          RM
Disposal price                          300,000
Less: Acquisition price                (500,000)
Allowable loss                         (200,000)


RPGT loss relief @ 5%                  10,000


(b) Sale of Shop house B on 18.1.2010

Disposal price                         800,000
Less : Acquisition price              (200,000)
Chargeable gain                        600,000


RPGT payable @ 5%                      30,000
Less: RPGT loss relief brought forward(10,000)
Net RPGT payable                       20,000

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