Malaysia Real Estate

[bayu]

Hi

I have a question here and wonder if anyone could help. I am a bit confused by capital gain tax and income tax.

I do not need to pay capital gain tax if i sell my property after 5 years. Well, is the earnings still subjected to income tax?

Tommy

[preacher]

There is no Capital Gains Tax in Malaysia unlike other Western Countries. We used to have a Real Property Gains Tax though but it was announced that it would be abolished from April 1 2007.

That means, what ever capital gain that you make, like selling shares, cars, watches is not taxable. Going forward, even selling Real Property is not subject to tax but its better to wait for the official guideline to be published.

However, if you are deemed to be running a biz from selling capital items, like a stock broker or property broker, the gains from selling these capital items will be considered as your biz income and will be taxed under biz income.

Hope that is clear to you.
_________________
practise what you preach

[bayu]

Hi Preacher

Thanks a lot.

Tommy

[afshinrah1]