5% Real Property Gain Tax in Malaysia

What some foreigners say..

“How can your government do this “see-saw” ruling on RPGT? I was under the impression and believed that I could get a 30% profit from my condominium sale? I am a pensioner and this gain will assist me with my monthly expenses and now I am faced with 5 % less! It is unfair! Please ask your government to weigh the pros and cons before the ruling is made. It will have an adverse effect on your property industry.” – Mr. Joe of the United States, 56 years old

“We like and love Malaysia and you have all the beauty of land, sea and beautiful houses and condominiums. We like to stay here because it is cheaper to educate our children and purchase an apartment in your country. In Korea, a 1,400 sq ft apartment 45 km from the city centre will cost us USD1 mil. Therefore, Malaysia is heaven to us. Tell your government, we investors have expenses but no income as we don’t have a business here. We sometimes travel in and out (of Malaysia) for our business in Korea, and if we have enough money, we will buy property here. Revenue will be brought into your country. Ask the government to impose tax on other things, OK?” – Mr. Jin Lee of Korea, 48 years old

“I have visited your country for the past 6 years just to learn your rulings (on property) and I feel that it is unfair because pamphlets printed by us have not been fully distributed (in Iran) and now a new ruling has been made. Buying property is one of the main priorities for Iranians because we strongly believe that having our own home is better than renting. We are new in your country and are still learning (about the local property market). We have not digested the old ruling and there is already a new set of ruling. I am not old but it is taking me a long time to understand what’s going on, so imagine what it is like for the older ones who hardly speak English. How do we explain the changes to them? They won’t understand and will think we are trying to swindle them. Government of Malaysia, do think through (the ruling) and don’t impose the 5% RPGT for the good of the property industry!” – Mr. Reza, of Iran, 47 years old

Let's hope there will be no more changes or surprises from the government. Do not scare away good investors. We want stability and consistency in government policies.