Wednesday, 8 October 2014

Is flipping a flop?

RPGT Calculation Example

Diana (Malaysian citizen), purchased a house in 2012 for RM415,000. She sold it in 2014 for RM560,000. Let's assume that Diana spent RM30,000 in legal fees, agent fees, administrative fees, and maintenance works;

Chargeable gains =
RM560,000 – RM415,000 = RM 145,000

et chargeable gain to be taxed
= (RM145,000 – RM30,000) - 10% individual exemption
= RM115,000 - RM11,500
= RM103,500

Diana sold the property within two years of purchasing it, so the tax imposed on RPGT is 30%.

Tax payable = 30% x RM103,500 = RM31,050.00

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