Property gain tax is the tax charged on gains of selling property via PropertyGuru. People are still finding ways to avoid any capital gains when they sell the property, but most methods have not reaped any benefits. This is due to the government’s strict measures to curb any real estate fraudulent transaction.
However, if you don’t sell your property at a profit, you will not be taxed as you will not have made any profits. Fortunately, there are other ways one can be exempted from paying property tax. For instance, if you sell private residential property to another person, you will not be taxed. However, this is only possible when a person sells their personal property for the first time and will not apply if sold for the second time.
Secondly, if you transfer or sell property to a family member, you can be exempted from paying property gain tax. You can transfer property to your wife, husband, nephews and nieces, or even grandparents.
Thirdly, if you sell a low cost or highly affordable house to another person, you cannot be taxed for such a transaction. Malaysia has been very keen on taxing people who sell the property. It has classified sellers into three categories, and each has a different percentage rate depending on the number of years. The three types include permanent residents, non-citizens and companies.
If you’re interested in this phenomenon, please take a look at the following infographic. It shows the latest research into how Malaysians are taxed when they sell property according to the categories mentioned. The infographic makes it easy to understand this tricky concept and provides an insight into how to calculate taxes. Check it out below.
Infographic designed by PropertyGuru