#Budget 2010:* Fixed 5% RPGT, confirms Ahmad Husni

IPOH: The Real Property Gains Tax (RPGT), effective Jan 1 next year, is only 5% irrespective of the property disposal year, says Second Finance Minister Datuk Seri Ahmad Husni Hanadzlah.

"The Real Property Gains Tax for the first year is 5% and is the same for the second, third, fourth and fifth year," he told Bernama on Oct 24. As announced by Prime Minister Datuk Seri Najib Tun Razak when tabling the 2010 Budget in Parliament on Oct 23, exemption is given to the sale of a residential property for the first time and transfer of properties among family members like father to children.

He was clarifying a a report that the Government proposed to re-impose the Real Property Gains Tax for monetary gains from property disposals.

The report said based on the Finance Bill, disposal within two years of acquisition will be taxed 30%, 20% in the third year and 15% in the fourth year while disposal within five years and beyond will still be subjected to 5% RPGT.