In Budget 2013 Malaysia, our Prime Minister, Dato’ Sri Mohd Najib bin Tun Abdul Razak has once again introduce a new structure of Real Property Gains Tax (RPGT) as following, effective 1 January 2013:
- First Year = 15%
- Second Year = 15%
- Third Year = 10%
- Fourth Year = 10%
- Fifth Year = 10%
- Above Fifth Year = 0%
Compare to Budget 2012, the RPGT tax was implemented as following:
- First Year = 10%
- Second Year = 10%
- Third Year = 5%
- Fourth Year = 5%
- Fifth Year = 5%
- Above Fifth Year = 0%
Generally, the additional 5% of RPGT is believed to have a very minimal impact to curb skyrocketing house prices issue.
Bear in mind, the completion time frame for strata titled building e.g. apartment, condo, townhouse is normally taking about 36 months and 24 months for landed property, which means under the new tax rate, 15% for first two years is basically not applicable for new launch property.
So can we conclude that, genuine home buyers for own stay are disappointed with the announcement; property investors are OK with it; whereas speculative activities will still go on?
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