Under Budget 2010, effective from 1st January 2010, Real Property Gains Tax (RPGT) has been re-imposed and it has fixed at 5% on the gains from the disposal of real property. The RPGT for the first year is 5% and it’s same for 2nd, 3rd, 4th and 5th year whereas previously the Real Property Gains Tax (RPGT) is progressive from 0 to 30 percent, depending on the property holding period.
Previous Real Property Gains Tax RPGT Rates
The below rates apply for disposals before 1st Jan 2010.
|Category of Disposal||Rate of Tax (%)|
|Disposal within 2 years||30|
|Disposal in the 3rd year||20|
|Disposal in the 4th year||15|
|Disposal in the 5th year||5|
|Disposal in the 6th year and subsequent years||0|