Taxation of chargeable gains
(1) A tax, to be called real property gains tax, shall be charged in accordance with this Act in respect of chargeable gain accruing on the disposal of any real property (hereinafter referred to as “chargeable asset”).
(2) Subject to this Act, the tax shall be charged on every ringgit of the total amount of chargeable gains accruing to a chargeable person in a year of assessment in respect of each category of disposal of chargeable assets specified in Schedule 5.
Rate of tax
(1) The tax shall be charged at the appropriate rate specified in Schedule 5 in respect of each category of disposal stated therein.
(2) The Minister, where he is satisfied that it is the intention of the Government to promote the introduction of a Bill to vary in any particular way the rate of tax, may by statutory order declare the rate to be varied in that way, and, where he does so, then, subject to subsections (3) and (4), this Act shall have effect as if the rate as so varied had come into force at the beginning of the first year of assessment for which the Bill seeks to vary that rate.
(3) Every order made under subsection (2) shall be laid before the Dewan Rakyat as soon as may be after it has been made and shall cease to have effect—
(a) at the expiration of three months (or such longer period as may be specified by resolution of the Dewan Rakyat) beginning on the date when the order was made; or
(b) on the coming into force (after the date when the order was made) of an Act varying the rate of tax, whichever is the earlier.
(4) Where an order made under subsection (2) ceases to have effect pursuant to subsection (3)—
(a) the amount of any tax which—
(i) has been charged by any assessment by reference to the order; and
(ii) is payable (whether or not it is due or due and payable) but not paid at the date when the order ceases to have effect, shall be taken to be amended to the amount which would have been payable if the order had not been made; and
(b) so much of any tax paid by any person in consequence of the order as exceeds the tax payable under the law in force immediately after the date when the order ceases to have effect shall be repaid by the Director General if that person—
(i) makes a claim therefor in the prescribed form within one year after that date; and
(ii) furnishes to the Director General such further particulars of the claim as the Director General may require.
Situation of interests, options, etc.
(1) The situation of interests, options and other rights in or over land is that of the land.
(2) The term “rights in or over” includes rights to purchase.
Chargeable persons
(1) Subject to this Act, every person whether or not resident in Malaysia for a year of assessment shall be chargeable with the tax in respect of a chargeable gain accruing to him in that year on the disposal of any chargeable asset.
(2) The supplementary provisions in Schedule 1 shall have effect with respect to persons chargeable with the tax.
Chargeable gains, allowable losses and tax relief for allowable losses
(1) Where a chargeable asset is disposed of, then—
(a) if the disposal price exceeds the acquisition price, there is a chargeable gain;
(b) if the disposal price is less than the acquisition price, there is an allowable loss; and
(c) if the disposal price is equal to the acquisition price, there is neither a chargeable gain nor an allowable loss.
(2) In this section, an allowable loss means a loss suffered on the disposal of a chargeable asset which, if it had been a gain, would have been chargeable with the tax.
(3) Subsection (1) shall be subject in its operation to Schedule 2, which shall have effect for computing acquisition and disposal prices and otherwise as provided therein.
(4) (a) Where there is an allowable loss in respect of a disposal, tax relief shall be allowed in respect of such allowable loss in an amount equal to the sum arrived at by applying to every ringgit of such allowable loss the appropriate rate of tax specified in Schedule 5 in respect of the category of disposal giving rise to that allowable loss as a deduction from the total tax assessed for the year of assessment in which the disposal was made; and
(b) where, by reason of an insufficiency or absence of total tax assessed for the year of assessment in which the allowable loss arose, effect cannot be given or cannot be given in full to paragraph (a), the tax relief which has not been so allowed (or so much thereof as has not been so allowed for that year) shall be allowed for the first subsequent year of assessment for which there is total tax assessed and so on for subsequent years of assessment until the whole amount of the tax relief to be allowed has been allowed.
Private residence
Subject to Schedule 3, a gain shall be exempt from the tax if it accrues to an individual who is a citizen or an individual who is not a citizen but is a permanent resident in respect of the disposal by him of his private residence.
Exemptions
(1) Notwithstanding any other provision of this Act, the gains specified in Schedule 4 shall be exempt from the tax.
(2) The Dewan Rakyat may by resolution delete any item in Schedule 4 or add any further item or items thereto.
(3) The Minister may by statutory order exempt any person or class of persons from all or any of the provisions of this Act.
(4) Any order made under subsection (3) shall be laid before the Dewan Rakyat.
Source: Laws of Malaysia, Attorney General's Chambers of Malaysia (lom.agc.gov.my). Not a copy of the Gazette printed by the Government Printer (Interpretation Acts 1948 and 1967, s 61).
