Commencement of amendments to the Real Property Gains Tax Act 1976
s 19
(1) Sections 20 and 21 have effect for the year of assessment 2026 and subsequent years of assessment. (2) Sections 22, 23 and 24 come into operation on 1 January 2026.
Finance Act 2025 Chapter III — AMENDMENTS TO THE REAL PROPERTY GAINS
Amendment of section 7
s 20
The Real Property Gains Tax Act 1976, which is referred to as the “principal Act” in this Chapter, is amended in paragraph 7(4)(b) by substituting for the words “subsequent years of assessment until the whole amount of the allowable loss to be allowed has been allowed” the words “a period of nine consecutive years of assessment and any amount or balance of the amount which is not deductible at the end of the period shall be disregarded for the purposes of this Act”.
Special provision relating to section 7
s 21
Notwithstanding subsection 7(4) of the principal Act, any amount of allowable losses for the year of assessment 2025 and the preceding years of assessment which has not been deducted pursuant to subsection 7(4) of the principal Act for the year of assessment 2025 may be taken into account for the purposes of deduction under paragraph 7(4)(b) of the principal Act for the year of assessment 2026 and subsequent years of assessment until the year of assessment 2035 and any amount which has not been deducted pursuant to paragraph 7(4)(b) of the principal Act after the end of the year of assessment 2035 shall be disregarded for the purposes of the principal Act.
Amendment of section 21
s 22
Subsection 21(3) of the principal Act is amended by inserting after the words “subsection (1)” the words “, (1a), (1b)”.
Amendment of section 21b
s 23
Section 21b of the principal Act is amended— (a) by substituting for subsection (1) the following subsection: “(1) Subject to subsections (1a ), (1 b ) and (1 c ), where on a disposal to which section 13 applies and the consideration consists wholly or partly of money, the acquirer shall— (a) retain the whole of that money; (b) retain a sum not exceeding three per cent of the total value of the consideration; or (c) retain the amount of tax on the chargeable gains deemed assessed under subsection 14(1), whichever is the less and, whether or not the amount is so retained, within a period of sixty days after the date of the disposal pay the amount to the Director General.”; (b) by substituting for subsection (1a) the following subsection: “(1a) Subject to subsection (1c), where a disposal under subsection (1) is made by a disposer under Part II of Schedule 5 in relation to a disposal within a period of three years after the date of acquisition of the chargeable asset, the acquirer shall— (a) retain the whole of that money; (b) retain a sum not exceeding five per cent of the total value of the consideration; or (c) retain the amount of tax on the chargeable gains deemed assessed under subsection 14(1), whichever is the less and, whether or not the amount is so retained, within a period of sixty days after the date of the disposal pay the amount to the Director General.”; (c) by inserting after subsection (1a) the following subsections: “(1b) Subject to subsection (1c), where a disposal under subsection (1) is made by a disposer under Part III of Schedule 5, the acquirer shall— (a) retain the whole of that money; (b) retain a sum not exceeding seven per cent of the total value of the consideration; or (c) retain the amount of tax on the chargeable gains deemed assessed under subsection 14(1), whichever is the less and, whether or not the amount is so retained, within a period of sixty days after the date of the disposal pay the amount to the Director General. (1c) In relation to the amount so retained under subsection (1), (1a) or (1b), the Director General may under special circumstances allow extension of time for the amount to be paid. (1d) Paragraph (1)(c), (1a)(c) or (1b)(c) may only apply if the notification under subsection 13(9) is received by the acquirer prior to the amount so retained under paragraph (1)(a) or (b), (1a)(a) or (b), or (1b)(a) or (b) is paid to the Director General.”; (d) in subsection (2), by inserting after the words “subsection (1),” the words “(1a) or (1b),”; (e) in subsection (3), by inserting after the words “subsection (1)” wherever appearing the words “, (1a) or (1b)”; (f) in subsection (4), by inserting after the words “subsection (1)” wherever appearing the words “, (1a) or (1b)”; and (g) in subsection (5), by substituting for the words “section 13” the words “subsection 13(6)”.
Amendment of section 24
s 24
Section 24 of the principal Act is amended— (a) by substituting for subsection (7a) the following subsection: “(7a) Any amount of excess in respect of tax payable for a year of assessment which is to be refunded to a person under subsection (1) may be utilized by the Director General for the payment of— (a) any other amount of tax which is due and payable (including any amount of instalments which are due and payable) by the person under this Act, the Income Tax Act 1967, the Petroleum (Income Tax) Act 1967 [Act 543] or the Labuan Business Activity Tax Act 1990 [Act 445]; or (b) any other amount of duty which is due and payable by the person under the Stamp Act 1949 [Act 378].”; and (b) in subsection (7 b ), by substituting for the words “subsection 111(4 a ) of the Income Tax Act 1967 or subsection 50(4) of the Petroleum (Income Tax) Act 1967” the words “subsection 80c(1) of the Stamp Act 1949, subsection 111(4 a ) of the Income Tax Act 1967, subsection 50(4) of the Petroleum (Income Tax) Act 1967 or subsection 12(2) of the Labuan Business Activity Tax Act 1990”.
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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).