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BAJET 2010

LEMBAGA HASIL DALAM NEGERI MALAYSIA

BAJET 2010 © LEMBAGA HASIL DALAM NEGERI MALAYSIA

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PART 4

AMENDMENTS TO REAL PROPERTY GAINS TAX

ACT 1976

BAJET 2010 © LEMBAGA HASIL DALAM NEGERI MALAYSIA

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Submission of Return

Current provision – sec 13Disposer • CKHT1 – within 1 month from date of

disposalAcquirer • CKHT2 – within 1 month from date of

disposal

Proposal• CKHT1 & 2 – within 60 days from date of

disposal wef 01/01/2010

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Retain & Pay Part of Consideration

Current provision – sec 21B, 24, 52, 53 & 55• acquirer – retain amount ≤ 5% from consideration• DG – requisition to acquirer– pay whole / part sum retained– within time specifiedProposal • acquirer – retain & pay to DG ≤ 2% from

consideration – within 60 days from disposal date– 10% increased for non-compliance• requisition – not applicable

wef 01/01/2010

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Chargeable Gains & Allowable Losses

Current provision – sec 7 Disposal of chargeable asset – • tax relief = allowable losses @ appropriate rate• deduction from total tax assessed • unabsorbed tax relief – c/f

Proposal• tax relief – replaced by allowable losses•allowable losses – reduced from chargeable gains• unabsorbed allowable losses – c/f

wef 01/01/2010

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Incidental Costs & Exemptions

ProposalIncidental costs - subsubpara 6(c) Sch 2• acquisition price excludes interest paid on

capital employed

Exemption for individuals – para 2, Sch 4 • Increased from RM5,000 to RM10,000 or

10% of chargeable gain; whichever is greater

wef 01/01/2010

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Savings & Transitional Provision

Proposal

Tax relief• unabsorbed till YA 2007 (ending

31/03/07)

deduction from total tax assessed from YA 2010 till fully utilized

wef 01/01/2010

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Rates of Tax

Current provision – part 1, Sch 5

wef 01/01/2010

Category of DisposalRates of Tax

Current ProposalDisposal within 2 years after the date of acquisition

30% 30%

Disposal in 3rd year after the date of acquisition

20% 20%

Disposal in 4th year after the date of acquisition

15% 15%

Disposal in 5th year after the date acquisition

5% 5%

Disposal in 6th year after the date acquisition

Nil 5%

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RPGT Exemption Order

Proposalrevoke P.U. (A) 146/2007• disposal – on or after 01/01/10 • amount of chargeable gain exempt from tax:

A x CB

A – chargeable gain @ appropriate rate – chargeable gain @ 5%

B – chargeable gain @ appropriate rateC – chargeable gain

wef 01/01/2010

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Chargeable Gains & Allowable Losses

Example 7 (refer Appendix 1)

YA 2010 RM

i) Consideration received 1,000,000

Deduct: renovation + incidental cost 261,400

Disposal price as at 10/02/2010 738,600

Less: Consideration paid on acquisition + transfer cost

1,024,000

Deduct: insurance compensation (62,600)

Acquisition price as at 15/04/2005 (961,400)

Allowable losses c/f (222,800)

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Chargeable Gains & Allowable Losses

YA 2010 RM

ii) Consideration received (Disposal part of larger chargeable asset. Sch. 4 exemption not given)

800,000

Deduct: incidental cost (10,000)

Disposal price as at 10/08/2010 790,000

Less: acquisition price as at 15/04/2006 (600,000)

190,000

Less: allowable losses (restricted) (190,000)

Chargeable gain (CG) to be taxed Nil

Allowable losses c/f (32,800)

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Chargeable Gains & Allowable Losses

YA 2012 RM

Disposal price as at 30/04/2012 2,000,000

Less: acquisition price as at 16/04/2010 (1,000,000)

Gain 1,000,000

Less exemption: RM10,000 or 10% of CG (Sch. 4) (100,000)

Chargeable gain 900,000

Less: allowable losses b/f (32,800)

867,200

Less: amount of CG to be exempted [ EO – 3rd year @ 20%]

[(867,200 x 20%) – (867,200 x 5%)] x 867,200 (867,200 x 20%)

(650,400)

Chargeable gain to be taxed 216,800

Tax payable: 216,800 @ 20% 43,360

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Certificate of Clearance

Current provision – sec 21A• certificate issued – disposer & acquirer• CKHT 4 – full payment on tax assessed• CKHT 5 – not liable to tax

Proposal• certificate of non-chargeability – disposer• cases not liable to tax

wef 01/01/2010

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Electronic Medium

Proposal – new sec 57A

Any prescribed form • furnished via – electronic medium– electronic transmission

• Condition & specifications - determined by DG

wef 01/01/2010

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Admissibility of Electronic Record

Proposal – new sec 48A• electronic medium – process where data, text,

images or any other information is stored, received or communicated by electronic, magnetic, optical, imaging or other data processing device

• prescribed form/documents –transmit to DG by electronic medium

• copy/print-out of electronic record – admissible as evidence in court

wef 01/01/2010

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TERIMA KASIH

BAJET 2010 © LEMBAGA HASIL DALAM NEGERI MALAYSIA