Real Property Gains Tax and Capital Gains Tax in Malaysia

INTRODUCTION

Prior to 1 January 2024, Real Property Gains Tax is the only direct tax in Malaysia to tax on capital gains, which covers gains from disposal of real properties and shares in Real Property Companies. It was announced during the Budget 2024 that Capital Gains Tax to be introduced on 1 January 2024, to cover the capital gains in relation to the disposal of unlisted shares of Malaysia incorporated companies and shares of foreign controlled companies with substantial real property holdings in Malaysia and other foreign capital assets. Therefore, it is important to understand the above taxes on capital gains and apply the correct provision and law in compliance, mitigating the tax exposures and opportunities for tax planning under lawful exemptions.

COURSE OUTLINE

Introduction to RPGT and its Scope

• The Basic Computation for RPGT

• RPGT Exemptions

• No Gain and No Loss Disposals

• Real Property Company (“RPC”) and RPC Shares as Chargeable Asset

• Administrative Aspects, Assessments and Appeal

• Real Property Gains Tax (“RPGT”)

Capital Gains Tax (“CGT”)

• Introduction to CGT and its Scope

• The Basic Computation for CGT and treatment of losses

• CGT Exemptions

• Administrative Aspects and Assessments