Malaysia Real Estate

[KKadvice]

Can a foreigners be tax after five years selling their property in Malaysia
Husband has passed away and she wanted to sell the property in malaysia
under her name now. Will there be any others term & condition to follows?
Pls Advice!

[pooh0]

Depends on the tax status of the person selling the property. In general, Malaysian tax residents who are individuals and who sell their property after holding for more than 5 years are not taxed on any gains from the value of the property. However, if the person is a non-resident for tax-purposes, i understand that the RPGT (real property gains tax) is about 30% regardless of how long the property is held....

[damansaravilla]

RATES OF TAX APPLICABLE ON CHARGEABLE GAINS ON THE DISPOSAL
OF ANY LANDED PROPERTY

YEAR OF DISPOSAL AFTER ACQUISITION
0-2 years
3 years
4 years
5 years
6 years or more

INDIVIDUAL
30%
20%
15%
5%
Nil

COMPANY
30%
20%
15%
5%
Nil


Non-residents and non-permanent residents who dispose their real property within 5 years are subjected to a flat rate of 30% on chargeable gains. However, if the real property is disposed after the fifth year, only 5% of the gain will be taxed.

[pooh0]

Actually, want to correct my earlier posting - the RPGT rate for holding property more than 5 years for Malaysian CITIZENS (residents and tax-non-residents) is 0%. However, for companies, it is 5% after 5 years. It never goes down to 0%.

[daan]

I am a newbie to real estate in malaysia, so please forgive me if this question has been asked. I am wondering what would happen if a a company (foreign) developed property (for example, tore down a old house and built a new one) and made profit. Therefore, the house is sold within 2 year period. Would the company have to pay real estate gains tax plus tax on income for the company?

Thanks.

[youbetcha1018]