April 2017 – Newsletter 2/2017

Newsletter 2/2017

Dear valued clients and business associates,

In this issue of our Newsletter, we would like to look at changes in Real Property Gains Tax and Stamp Duty which was brought by the Finance Act 2017. 

Our Bilingual Advisory memo on Companies Act 2016 can also be found in this issue of our newsletter

Please refer to the section below for more information. Happy Reading!

With compliments from,
M.S. Wong & Co

I) Real Property Gains Tax (RPGT)

When an adjustment is made under the GST Act to which the input tax relates to an expenditure incurred on an acquisition or disposal of an asset, a corresponding adjustment will be made to that expenditure for RPGT purposes. This adjustment will occur during the YA the disposal is made or at the end of the adjustment period as provided under the GST Act, whichever is earlier.

1. Disposal by way of gift has is now restricted to a donor who is a citizen and the donor and recipient are husband and wife, parent and child or grandparent and grandchild.

2.The donor shall be deemed to have received no gain and suffered no loss on the disposal where the gift is made within five years after the date of acquisition by the donor. 

II) Stamp Duty

Stamp duty exemption be given on instrument or transfer of ownership and loan agreement for acquisition of first residential property not exceeding RM300,000 by Malaysian citizens
For acquisition of first residential property exceeding RM300,000 up to RM500,000, stamp duty exemption be given on instrument of transfer of ownership and loan agreement but limited to first RM300,000 of the value of the property with the remaining value subject to the prevailing rate of stamp duty.

Stamp duty on instruments of transfer of real estate on amount exceeding RM1 million be increased from 3% to 4%
Therefore, stamp duty payable on instruments for conveyance, assignment or transfer of any property (except stocks, shares or marketable securities)

Advisory memo on Companies Act 2016