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RPGT should be zeroized till the end of the year

April 1st, 2020 Leave a comment

penang-development

The Real Property Gains Tax (RPGT) should be zeroized (as it was in 2007) till the end of the year to help boost the already soft real estate market in the country, said the Malaysian Institute of Estate Agents (MIEA).

This will help reduce losses of property sellers who are facing a demand from buyers to reduce prices in light of the economic downturn and the impact of the current COVID-19 pandemic, it said in a press statement today.

To help Malaysian property sellers, it also suggested that the collection of Sales and Services Tax (SST) for real estate transactions be placed in ‘abeyance’ until the end of the year to help sellers from having to incur additional costs.

For property buyers, it proposed that a transfer of 10% of funds from Account 1 of the Employees Provident Fund (EPF) into Account 2 to provide liquidity for the purchase of homes or assistance in repayment of loans after the moratorium of six months declared by Bank Negara.

It added that MIEA had in previously proposed for Interest Only Loans for the purchase of properties to be introduced. “Perhaps this would be the right time for this to be considered especially after the six months moratorium as a longer-term measure for first time house buyers,” it added.

Source: EdgeProp.my

 

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  1. Sammy
    April 2nd, 2020 at 08:05 | #1

    The (previous) govt has actually made a blunder of RPGT ruling by imposing all the hassle there.
    It should be reverted back the last system say, after 5 years there shouldn’t be any tax at all.

  2. pikachu
    April 2nd, 2020 at 09:48 | #2

    5 years I think is too short, many new developments nowadays come with a completion deadline of 48 months, which means a buyer can already sell his property at 0% tax just after 1 year from CCC. To prevent short term flippers, at least a 5-year wait from CCC is required for 0% tax.

  3. andy
    April 2nd, 2020 at 13:28 | #3

    yes agree, count 5 years from CCC date and not the SPA date. Easiest.
    Then they are forced to hold the property for at least 5 years after completion.

  4. Gabriel
    April 2nd, 2020 at 14:46 | #4

    How about Cukai Pintu?
    Is there plan to set it to zero too?
    Whoever made the payment, that payment can be carry over to next year.
    Hope that Penang Gov can consider.

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