Malaysia is considering a hike in the real property gains tax (RPGT), which is imposed on the profits from the sale of properties within certain periods after their purchase. This would be done to restrict what is seen as too much speculation in the housing market.
At present, 15 percent has been imposed on RPGT (from percent last year rate of 10) and 10 percent (increased from 5 percent) on properties sold within two years and two to five years of purchase, respectively.
The existing RPGT rates do not appear to have affected speculation in property prices, and the Government is therefore studying an RGPT rate increase, but it is not clear if the measure would be included in the 2014 Budget.
As the present RPGT rates are too low to have a real effect on speculation, it is considered by some commentators that the tax should be levied at 25 percent (up from 15 percent) on properties sold within three years (rather than two years) and that the Government could also target, in particular, those taxpayers who have made multiple sales and purchases over a certain period. No proposals have yet been published however.
