Kuala lumpur: Both parties involved in property ownership transfer transactions in Malaysia are required to report to the Inland Revenue Board (HASiL) within 60 days from the date of transaction for Real Property Gains Tax (RPGT) purposes.

According to BERNAMA News Agency, HASiL Principal Assistant Director of the Stamp Duty and Real Property Gains Tax Operations Department, Azman Muhammad, emphasized the need for timely reporting of transactions such as sale and purchase, transfer of rights, transfer of ownership, and assignment of property through the MyTax portal.

Azman highlighted the responsibility of both the disposer (seller) and acquirer (buyer) to report asset disposals and acquisitions to HASiL. He noted that late reporting would result in penalties under Section 29(3) of the RPGT Act. Prosecution action, including fines of up to RM5,000 and imprisonment not exceeding 12 months, or both, may be taken against those who fail to submit the RPGT Return Form.

He further explained that the objectives of RPGT include increasing national revenue, educating the public on tax responsibility, and curbing speculation in the property market. Azman pointed out that RPGT is imposed on capital gains due to high values and speculative activities, which force Malaysians needing homes to buy at higher prices. The government aims to stabilize the property market through RPGT to assist the people.

Azman detailed that RPGT rates are based on the property's holding period, with higher rates for shorter durations. Individuals selling property within the first three years face a 30% tax rate, decreasing to 20% in the fourth year, and 15% in the fifth year. From the sixth year onwards, individuals are not subject to RPGT.

For more information on RPGT rates for various categories, including individuals, companies, and foreigners, details can be found on HASiL's official website at www.hasil.gov.my.