Taxation of Property Transactions: RPGT or Income Tax?


Image courtesy of renjith krishnan/ FreeDigitalPhotos.net

I have given numerous talks on the tax implications of property investments/transactions in the past and one of the most common misconception of property investors is that the disposal of properties can only be subject to Real Property Gains Tax (“RPGT”). Boy, were they surprised when I told the participants that the Inland Revenue Board (“IRB”) can charge the gain on the disposals to Income Tax!

Many are still unaware of the laws governing the taxation of property transactions and the tests adopted by the Inland Revenue Board (IRB) to determine whether the gains on disposals of property transactions are subject to Income Tax or RPGT.

I was delighted when I was invited by NST: Real Estate & Decor (RED) to contribute an article to their papers. So I thought that this would be the most ideal topic to touch on so that I can create some awareness on this subjective issue of taxation of property transactions to the public.

You can read the newsprint version here:

Read more about this interesting topic in my article which was published in NST: RED on  7th December.

About Richard

Richard Oon Hock Chye has more than 25 years of experience in taxation and business advice, with particular expertise in Malaysian property law. He began his taxation career with Deloitte Touche Tohmatsu, a ‛Big Four’ accounting firm, before starting his own practice, ConsulNet Tax Services Sdn. Bhd., in 1996. He is currently the National Tax Director of TY Teoh International, one of the leading consulting service providers in Malaysia. It is a member of the MSI Global Alliance, a global network of more than 250 independent legal and accounting firms, in over 100 countries. Richard sits on the board of two companies listed on the Main Board of Bursa Malaysia, as an independent non-executive director. He is also a regular contributor to several magazines and publications, and has shared his tax expertise on numerous occasions with organisations and property developers. As well as being a member of the Malaysian Institute of Accountants (MIA), Richard is a fellow member of both the Association of Chartered Certified Accountants (ACCA) and the Chartered Tax Institute of Malaysia (CTIM). He is a Certified Financial Planner (CFP) and holds a tax agent licence issued by the Ministry of Finance. Richard is also the author of the book, ‘Every Property Investor’s Guide To How To Pay Less Tax Legally’.

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