Property Hunter Magazine Property Hunter Magazine Issue 50 - January 2014 | Page 60

/// Contributor Richard Oon Real Estate Taxation Expert Richard Oon is the National Tax Director of TY Teoh International, a member firm of the MSI Global Alliance, which is one of the world’s largest independent associations of accountancy and law firms. Richard is a member of the Malaysian Institute of Accountants (MIA), a fellow member of the Association of Chartered Certified Accountants (ACCA), a fellow member of the Chartered Tax Institute of Malaysia (CTIM) and also a Certified Financial Planner (CFP). He has more than 20 years experience in the taxation industry and holds a tax agent licence issued by the Ministry of Finance under Section 153 of the Income Tax Act 1967. Budget 2014 Property Speculators: Time for a New Strategy O n 25 October 2013, our Prime Minister cum Finance Minister, Datuk Seri Najib Tun Razak, tabled the muchanticipated Budget 2014 proposals. Much-anticipated by many due to the expected changes to the Real Property Gains Tax (RPGT) laws to curb property speculation and the announcement of the introduction of Goods and Services Tax (GST) in Malaysia. Along that front, our PM didn’t disappoint us, as among other proposals, those changes were among the major highlights of revenue collection measures that became the talk of the town of late. The proposed changes to the RPGT rates announced during the Budget 2014, which are to take effect from 1 January 2014 for disposal of real properties and shares in real property companies, are as follows: Until 21.12.13 (All categories of taxpayers) 15% 30% 30% 30% 10% 30% 30% 30% Disposal in the 4th year 10% 20% 30% 20% Disposal in the 5th year 10% 15% 30% 15% Disposal in the 6th year and thereafter www.PropertyHunter.com.my Companies Disposal in the 3rd year 60 Individuals (Non-citizens) Within 2 years While the author makes reasonable efforts to present information which he believes to be reliable, the author makes no representation that the information or opinions contained in this article is accur