Taxation issues

[wuqi256]

Quick recap and posting for the benefit of others to the new thread:

No capital gains tax
Real gains tax if a property is sold within 5 years.
10% rate if sold within first 2 years
5% rate if sold from 2nd year to 5th year
0% if sold after 5 years

This 5-10% is based on the profit difference between the buy and sale price.
This is can be deducted based on many items including repairs, renovation, etc.

Corporate tax:
25% flat for most type of organization

Personal income tax
1-26% and can deduct personal computer, books, courses, insurance, parents, wife, kids, internet, etc for tax resident (staying at least 182 days a year, those with MACS, go figure )

26% flat rate for non tax residents with no deductions given

 

[2bFree]

I think the last sentence should be amended to 26% flat rate for non-residents yes?

 

[wuqi256]

I think the last sentence should be amended to 26% flat rate for non-residents yes?

Thanks for picking that up the typo. Amending.

 

[2bFree]

No problem, at least you know some one reads the post in detail

This is an example provided by fellow forumer austin_hts that I am repeating verbatim:

Property price - RM 500K
Annual rental - RM 25K (5% yield)
Expenses (incl interests, maintenance..etc) - RM 15K
Net income - RM 10K (25 - 15)
Tax - RM 2,600 (26% of 10K)

For non resident... Hope this helps.

 

[2bFree]

I would like to amend the example provided with the following instead which should be clearer in the terms used:

Property purchase price - RM 500K
Annual rental - RM 25K (5% per annum yield)
Expenses (incl bank interest, conservancy fees, repairs, maintenance, renovation etc; non-claimable) - RM 15K
Gross profit/income - RM 10K (25 - 15)
Tax - RM 2,600 (26% of 10K)
Nett profit/income - RM7,400