Real property gains tax
Tax on capital gains is confined to gains from disposals of immovable properties or shares in real property companies under the Real Property Gains Tax Act 1976 (Malaysia) (“RPGT”).
In cases where the assets of a deceased devolved on the executor or legatee under a will or intestacy or on the trustees of a trust created under the will, there is no chargeable gain. In these cases, the disposal price is deemed to be equal to the acquisition price (RPGT - Schedule 2 item 3(a)).
Where the assets of a deceased person are disposed of (otherwise than to a legatee), the assets are deemed to have been acquired on the date of death of the deceased (RPGT - Schedule 2 item 15B(1). The acquisition price is the price equal to the market value of the asset as at the date of death. If any compensation, insurance monies or deposit forfeited have been received in respect of the asset, such sums are deducted from the acquisition price. The capital gain will be the difference between the disposal price and the acquisition price.
Where a legatee accepts an asset in place of a money legacy, there is deemed an acquisition of the asset by the legatee at an acquisition price equal to the amount of the legacy or the market value of the asset as at the date of transfer of ownership of the asset to the legatee, whichever is the ((RPGT - Schedule 2 item 19(2)). If any compensation, insurance monies or deposit forfeited have been received in respect of the asset, such sums are deducted from the acquisition price. Similarly the capital gain will be the difference between the disposal price and the acquisition price.
Capital gains tax is payable on the capital gain.
This preview is an excerpt from the following publication. this publication for access to all the commentary and precedents.
Probate - Step by Step Guide & Precedents
by By Lawyers For Lawyers author - C M Teng
Overview
This publication gives practical guidance through the law governing the process of obtaining letters of administration in Western Malaysia.
The commentary and precedents provides systematic instruction through all issues likely to arise in general practice including;
- Grant of Probate
- Estate Taxes
- Reseal of Probate
- Application for Executor and Administrator Commission
This guide will ensure compliance with the Probate and Administration Act 1959 and the extensive procedural law as set out in the Rules of the High Court 1980. The precedents in this work are for use in the states of West Malaysia.