On March 20, Mr Sun wrote in and asked on the following:
For RPGT Tax, does everyone have 1 time waived for this tax?
Pursuant to a conjunctive read of Section 8 and Schedule 3 of Real Property Gains Tax Act 1976 (“RPGTA”), an individual who is a citizen or permanent resident is entitled to a ‘once-in-a-lifetime’ tax exemption on any chargeable gain arising from the disposal of his private residence provided that he elects in writing for the exemption to apply to that private residence.
If Yes. What if the owner is currently staying in his first property about 3 years now and haven apply to waived the tax yet, now he wants to buy 2nd property for investment, can he waived the tax in 2nd purchase?
The owner may elect to waive the chargeable RPGT during his disposal of the second property (within 5 years) provided that he satisfies the following:-
- The owner is Malaysian citizen or permanent resident;
- The property is a private residential property; and
- The owner has never applied for such RPGT exemption prior to the disposal.
Kindly note that any disposal of property by an individual above 5 years from the date of its acquisition is not subject RPGT.