5% RPGT Only If Sold Within 5 Years

Dear Readers,

In a Bernama report dated 23 Dec 2009, Prime Minister Datuk Seri Najib (of Malaysia) was quoted as having announced that the 5% RPGT - real property gain tax introduced in the recent budget - would only be applicable to real estate properties sold within 5 years of their purchase.

Recently, in the budget announcement, the 5% RPGT - which was intended to take effect on 1 Jan 2010 - would be applicable regardless of years of holding of the properties by their vendor-owners. "...the decision was made following requests from the business sector and Federation of Chinese Associations of Malaysia or Hua Zong...", the Prime Minister was reported to have said.

With the change, the report further says: the Government will be foregoing about RM200 million in real property gain tax revenue - "We are willing to forego a substantial amount of revenue so that the sector can expand and grow", the Prime Minister was quoted as saying in a speech at the swearing-in of Hua Zong's office-bearers for the 2009-2011 term at Marriott Hotel, Putrajaya.

I am sure all real estate players in the country including the Malaysian property agents (of which I am one) welcome the announcement by the Prime Minister with thanks - it's Good News by the Prime Minister on the threshold of the incoming New Year 2010.

Merry Christmas & A Successful New Year to ALL!

Cheers,
Douglas GT Tan