PETALING JAYA - The increase in the Real Property Gains Tax (RPGT) to discourage speculative buying has come in for wide support, and not just among people looking to own homes. Fomca secretary-general Datuk Paul Selvaraj said he backed the Budget 2014 proposal of almost doubling the RPGT to 30% as it was essential to curb speculation. “We feel the Government did listen to consumers, and owning a house has now become a higher possibility,” he said.
| Holding Period | RPGT Rates | ||
| Companies | Individual (Citizen & PR) | Individual (Non-Citizen) | |
| Up to 3 years | 30% | 30% | 30% |
| 4th year | 20% | 20% | 30% |
| 5th year | 15% | 15% | 30% |
| 6th year onwards | 5% | 0% | 5% |
Besides the RPGT, the Malaysian Government has also presented a set of rules related to the property investment in the country that include:
- Minimum property value to be purchased by foreigners increased from RM 500k to RM 1 million
- Developers are not allowed to offer the popular Developer Interest Bearing Scheme (DIBS) during construction
- Sales and Service Tax abolished, successed by Goods and Services Tax (GST) at 6%