Malaysia Budget 2014
25th October 2013
Part – 3
Hello Everyone,
We are waiting for announcement on property sector and we know you are anxious too.
I’m shivering here while written this Budget 2014 for the property sector.
You want to know the announcement?
It is good? Or bad?
We will let you judge it.
So, let’s go.
The government had review the Real Property Gains Tax ( RPGT).
During the tabling of the Budget 2014, Prime Minister Datuk Seri Najib Tun Razak said for gains on properties disposed within the holding period of up to three years, RPGT rate is increased to 30%.
Whereas for disposal within the holding period up to four and five years, the rates are increased to 20% and 15% each.
For disposal made in the sixth and subsequent years, he said no RPGT is imposed on citizen, whereareas companies are taxed at 5%
RPGT Amendment For Citizen:
|
Holding Period |
New Amendment |
Existing Policy |
| 1st and 2nd year |
30% |
15% |
| 3rd year |
30% |
10% |
| 4th year |
20% |
10% |
| 5th year |
15% |
10% |
| 6th and subsequent years |
0% |
0% |
For Non-citizens, Datuk Seri Najib Tun Razak said RPGT is imposed at 30% on the gains from properties disposed within the holding period of up to five years, and disposals in the sixth and subsequent years, RPGT is imposed at 5%.
RPGT Amendment For Non- Citizen:
|
Holding Period |
New Amendment |
Existing Policy |
| 1st and 2nd year |
30% |
30% |
| 3rd year |
30% |
20% |
| 4th year |
30% |
15% |
| 5th year |
30% |
5% |
| 6th and subsequent years |
5% |
5% |
PM also proposed to increase the minimum price of property that can be purchased by foreigner from RM500,000 to RM1million.
He said property developers will have to display 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.
Government would also prohibit developers from implementing projects that have features of DIBS, to prevent developers from incorporating interest rates on loans in house prices during the construction period.
Therefore, financial institution are prohibited from providing final funding for projects involved in the DIBS scheme.
Wow, that’s mean NO MORE DIBS SCHEME !
While, the DIBS (Developer Interest Bearing Scheme) will be extinct soon.
And if you are looking forward to use this scheme, you have to grab it by this year!!
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