Prime Minister Datuk Seri Najib Razak said for gains on properties disposed of within the holding period of up to three years, the RPGT rate was increased to 30 per cent, whereas for disposals within the holding period up to four and five years, the rates were increased to 20 per cent and 15 per cent, respectively.
“For disposals made in the sixth and subsequent years, no RPGT is imposed on citizens, whereas companies are taxed at five per cent,” he said when tabling the 2014 Budget in Parliament today.
For non-citizens, Najib said the RPGT was imposed at 30 per cent on the gains from properties disposed of within the holding period of up to five years and for disposals in the sixth and subsequent years, the RPGT was imposed at five per cent.
He also announced an increase in the minimum price of property that could be purchased by foreigners from RM500,000 to RM1 million and increased transparency in property sales price.
“Property developers will have to display detailed sales price including all benefits and incentives offered to buyers such as exemption of legal fees, stamp duty, sales agreements, cash rebates and free gifts,” he added.
Developers are also prohibited from implementing projects that have features of developer interest bearing scheme (DIBS) to prevent developers from incorporating interest rates on loans in house prices during the construction period.
“Therefore, financial institutions are prohibited from providing final funding for projects involved in the DIBS scheme,” he added.
Source: Bernama
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