Proposal on real property gain tax on the Malaysia Budget 2010 can be seen in this Appendix of Budget 2010, at Appendix 15.
The Malaysia Budget 2010 speech can be seen here.
Did some calculation: data.
Taking into account of exemption “up to RM10,000 or 10% of the gains, which ever is higher be given to individuals”, it can be seen that there are 3 "regimes" of effective real property gain tax:
1. For real property gain from 0 to 10,000, effective real property gain tax is 0%.
2. For real property gain from 10,000 to 100,000, effective real property gain tax increases from 0% to 4.5%, with sharp initial increase. Rate of increase decreases with increase of real property gain.
3. For real property gain from 100,000 onwards, effective real property gain tax is 4.5%.
It seems the effective real property gain tax favoured smaller amount of real property gain.
This new flat-rate real property gain tax irregardless of holding period is less effective in curbing speculation in real estate compared to the older-version RPG tax which have progressive rates.
