Frequently Asked Questions

1. I'm a first time buyer, can you give me some guidelines as to what are the things I should be aware of before I commit to buy a property?

Buying Procedures

  • Pay earnest deposit of 3% of purchase price for confirmation (Signing an option to purchase)
  • Pay 7% of purchase price 14 days later (Signing of Sale and Purchase Agreement)
  • Pay 90% of purchase price within 3 months after signing of Sale and Purchase Agreement (Take possession of property)

Renting Procedures

  • Properties found
  • Pay one month deposit
  • 7 days from confirmation signing of tenancy agreement (Pay additional 2 months rental and utility deposit)
  • Stamping of tenancy agreement

Buying Property

Purposes Of Buying A House:
  1. For own usage: Having an own home is a dream for everybody. 
  2. For investment purposes: The purchase of a property may be for investment purposes where you get returns from rental or a higher price from resale.
Types Of Houses
  1. Landed house: This kind of property is suited for bigger families as it provides more room. A landed house also has open spaces for those who enjoy gardening or pets, and also allows room for renovations and extensions.
  2. Condominium: Condominiums are becoming more popular in big cities like Kuala Lumpur, Penang and Johor Bahru. Normally they are built near city centers and attract younger Malaysians with smaller families. Condominiums normally provide 24-hours security, sports facilities, laundry services, grocery stores and food courts. A certain amount of maintenance fee will be charged for these facilities.
The Way to Buy a House
  1. Buy a piece of land: A piece of land can be purchased to build a house according to unique preferences.
  2. Buy a new house from a developer: This is an easier buy as there is no need for renovations and touch-up costs.
  3. Buy a completed house: You can choose a house to match your personal needs and the existing neighborhood can be identified. You also don't have to worry about the risk of project abandonment.
Shopping For A House
  1. Location: This is the most important aspect when you shop for a house. A shorter distance from home to your office will save you valuable time. Living away from the city is a good idea if one prefers a peaceful and serene surrounding and basically it will cost you less.
  2. Price: Before buying a house, you should plan out and assess your budget and financial capability to avoid failure in making the mortgage payments. The following are the most important things to look out for:
    • Downpayment: 10 to 20 percent of the house
    • Monthly repayment: 33 percent of your monthly income.
    • Other costs: Lawyer fees, government duties, transfer of ownership, renovation/repairs, maintenance fees for condo living, etc.
  3. Neighbourhood: Always look for a surrounding that you feel most comfortable and convenient to live in. Find out about the available shopping places, schools, clinics, cafeterias and others. However, illegal activities such as rubbish dumping, illegal workshops and squatters may somehow devalue your property. Do not rush into making a decision. Buying a house is not like buying groceries. Think carefully whether it is the one you are looking for. A cheaper house does not mean it's a better deal. Check the condition of the house and if possible talk to your potential neighbours to gather more information
 Getting a Loan
  1. Where from? There are a few sources of funds to choose from:
    • Commercial banks
    • Finance companies
    • Government loans
    • Employees housing loans
    • Building Societies and Cooperations
  2. Types of loans? Normally, home buyers get their loans from commercial banks. Commercial banks offer several types of loans:
    • Loan facility
    • Overdraft facility
    • Loan and overdraft facility
    • Endowment mortgage
    • Mortgage from Islamic banks
  3. Features of commercial banks loans:
    • Mortgage amount: Basically banks offer up to 80% loan of the purchase price.
    • Repayment period: Maximum 25 years.
    • Interest rate: Normally 10%-13% depending on the Base Lending Rate
    • Criteria for Loan Approval:
      • Income
      • Age ? minimum 18 years old
      • Employment Purpose of Mortgage
Legal Issues
  1. Legal issues are complex procedures of paper work signing. Of course you have to understand every aspect before you put down your signature. There are a few things you should keep in mind:
    • You should make your payment to developers through your own solicitor or lawful owner as he/she will protect your interests.
    • You must read and fully understand the terms and conditions stated in the Sale and Purchase Agreement. Consult your solicitor if you want to amend anything before you sign the Sale and Purchase Agreement.
    • Your solicitor should be fully responsible for the purchase of your house, and do not share the same solicitor with the seller, as a conflict of interest may occur.
  2. Things that your solicitor should get:
    • Photocopies of purchaser's and seller's addresses, telephone numbers, and etc for identification.
    • Original copy of Sale and Purchase Agreement.
    • Deed of Assignment.
    • Search on the master title of the house to assure that the seller is the rightful owner.
  3. Lawyer Fees: Effective from January 1, 1992, legal fees are standardized by the Solicitors' Remuneration Order 1991. There are two types of calculation for legal fees:
    • First Schedule (Sale and Transfer): Lawyer fees are determined by value of the house in the Sale and Purchase Agreement.
      House Value  Buyer  Seller 
      1 st RM100,000.00  1% of House's Value (Minimum RM200.00)  1% of House's Value (Minimum RM200.00) 
      Next RM4.9 million  0.5% of House Value  0.5% of House Value 
      Thereafter  0.25% of House Value  0.25% of House Value 
    • Fourth Schedule (Charges, Debentures and Security Loan Documents):
      Lawyer fees are determined by the loan amount for the above documentation.
      Loan Amount  Legal Fees to buyer
      1 st RM100,000.00  1% of the Loan Amount (Minimum RM200 per transaction)
      Next RM4.9 million  0.5% of Loan Amount
      Thereafter  0.25% of Loan Amount
      * Fees subject to 5% government tax.
  4. Stamp Duty
    There are two types of Stamp Duties:
    • Stamp Duty on Loan Amount
      Loan Amount  Stamp Duty
      RM 50,000  RM 250
      RM 100,000 RM 500
      RM 150,000 RM 750
      RM 200,000  RM 1,000 
      RM 250,000  RM 1,250 
      RM 300,000  RM 1,500 
    • Progressive Present Stamp Duty on Transfer of House Title
      House Value Stamp Duty Payable
      1 st RM100,000.00  1%
      Next RM400,000 2%
      Next RM1.5 million 3%
      Thereafter  4%
    • Tax for Sales of Property: Buyers and sellers have to file their forms under the Real Property Gains Tax Act to avoid penalty. The Seller has to pay tax for profit on disposal of property under the Real Property Gains Tax Act. Rate varies according to the number of years you hold the property.
      Number of year Tax rate
      Within 1-2 years  > 30%
      3 years 20%
      4 years 15%
      5 years  5%
      Thereafter  None
Insurance

Insurance will protect your investment and also your family's welfare from unpredictable disasters. In the case of property under financing, it is mandatory to insure your house through a financing bank. A House/Fire Insurance will protect you and your family from natural disasters like fire, flood, lightning, earthquake, etc or man-made disasters such as riots, explosion, theft, aircraft accident, etc. A Mortgage Life Assurance is designed for those who are entitled to a housing loan. Your outstanding loan balance will be cleared by the insurance company if anything happens to you (death or disablement).

Before Moving

Things to do before moving:

  1. Inform others of your new address and telephone number:
    • Relatives
    • Friends
    • Employer
    • Bank
    • Doctor
    • Other service providers like cellular phone, magazine.
  2. Terminate the utilities services:
    • Telephone
    • Electricity
    • Water
    • Newspaper
  3. Date of Moving
    • Check with the local weather forecast to avoid thunderstorms
    • Consult your Fengshui master if you practice geomancy
  4. Planning (two weeks before moving)
    • Make an appointment with the moving company.
    • Inform in advance those who will help you move.
    • Start to collect boxes for storage
    • Reduce your food supply.
    • Discard unwanted items.
    • Arrange to transport your pets/fishes safely
top↑
2. If I need to withdraw money from my EPF accounts, what should I do?

To Purchase or Build a House Withdrawal Scheme

This scheme allows members to withdraw from their account II to purchase or build a house or shophouse with dwelling unit.

  1. Amount eligible to withdraw
    Members can withdraw their savings under this scheme as below, which ever is lower: the difference between the price of the house and the housing loan with an additional 10% of the price of the house, or the balance amount in account II.
  2. Example:
    Price of the House  RM 75,000.00 
    Housing Loan  RM 60,000.00 
    Difference Between The Price of the House and Housing Loan  RM 15,000.00 
    Additional 10% of the Price of the house  RM 7,500.00 
    Amount Eligible for Withdraw  RM 22,500.00 
    Balance in Account II  RM 18,000.00 
    Amount Can Be Withdrawn  RM 18,000.00
    For this case, the member can only withdraw RM18,000.00, which is the balance in Account II. How to apply Members are required to submit KWSP 9C (AHL) form together with the necessary supporting documents.
    Members are also allowed to apply under the Reducing or Redeeming Housing Loan Withdrawal Scheme for the same house every three years.

Withdrawal Scheme for Redusing / Redeeming Housing Loan

This scheme allows members to withdraw from their Account II to reduce or redeem their housing loans. Withdrawal can be made once in every three years.

  1. Terms and condition Member may apply under this scheme if:
    • There is an outstanding balance of loan for purchasing a house or shophouse with dwelling unit;
    • Members who have refinanced their said house are subjected to withdraw the amount of the original housing loan; and member has not attained the age of 55 from the date of application received by the EPF
  2. Members do not qualifies under this scheme if:
    • The purpose of withdrawal is for renovation, repair or other extension of the existing house.
    • Member mortgage the house to acquire finance for the purpose of other than to purchase or build a house
  3. Amount eligible for withdrawal Members can withdraw their savings under this scheme as below or which ever is lower:
    • For individual application
      - total outstanding balance of the loan; or
      - balance amount in Account II.
    • For joint application
      - total outstanding balance of the loan, or
      - balance amount in Account II for both Application.
    • Under joint application, EPF will process the application of first purchaser. If the amount is insufficient, EPF will proceed to process the second purchaser
  4. Example
    • Individual Application
      Price of the House  RM 75,000.00 
      Housing Loan  RM 67,500.00 
      Outstanding Balance  RM 31,500.00 
      Balance in Account II  RM 15,000.00 
      Amount eligible for withdrawal  RM 15,000.00 
    • Joint Application
      Price of the House  RM180,000.00 
      Housing Loan  RM140,000.00 
      Outstanding Balance  RM 98,500.00 
      Balance in Account II  RM 20,000.00 
      Balance in Account II  RM 10,000.00 
      Amount eligible for withdrawal  withdrawal RM 30,000.00 
  5. How to apply
    Members are allowed to apply for the withdrawal under this scheme every three years from the date of the first withdrawal from the same account. Members are required to submit KWSP 9C(AHL) form to the EPF.
  6. Withdrawal to Reduce or Redeeming Housing Loan for House
    Effective from 2nd January 2001, members can withdraw from their account II to reduce or redeem housing loan for their spouse on the condition that:
    • they are non-borrowers;
    • they are registered as co-owners;
    • the house is mortgaged to the financial institution.
  7. Withdrawal to Reduce or Redeeming Housing Loan for Second House
    Effective from 2nd January 2001, members can also withdraw to reduce or redeeming housing loan for their second house on condition that the first house, which was funded from their EPF savings has been sold.
    For more information, please visit or call the nearest EPF office. Any queries can be sent to the EPF via e-mail.

Withdrawal for Second House

Effective from 2nd January 2001, members can also withdraw from their account II to purchase or build their second house on condition that the first house, which was funded from their EPF savings, has been sold.

Members are required to submit documentation of the sale of property such as:

  • Memorandum of Transfer (KTN 14A); or
  • Title Deed under purchaser's name; or
  • Deed of Assignment; or
  • Loan Agreement cum Assignment.

If the house purchased or built before 2nd January 2001, members can only withdraw to reduce or redeem their housing loan only.

top↑
3. What about housing loan?

  1. Choosing Your Financial Institution

    You should shop around before you decide on any financial institution. Remember that when you take up a housing loan, you will be dealing with the financial institution on a regular basis for a period of time. Therefore, you should also consider factors other than just interest rates. Below are some of the factors you should consider:

    • How professional is the financial institution in dealing with customers?
    • Does it offer quality service in terms of efficiency and reliability?
    • What are the available loan packages and which package suits you best?
    • What are the charges involved?
      For example, legal fees, related government fees and charges, disbursement fees and others. You should also be informed when and how often these charges are to be paid

    2. An innovative financial institution may offer a more suitable loan package that suits your needs and their application process may be faster and hassle-free. It usually takes about one to two weeks for your loan application to be approved from the time you submit all relevant documentation.

  2. Loan Application : Documents Required

    You need to provide the following basic documents before the financial institution can process your loan application:

    • A photocopy of identity card or passport
    • Your latest 3 months' salary slip
    • Your latest income tax return form (Form J) or EA form
    • Sale and Purchase Agreement/deposit or booking receipt/letter of offer from the housing developer
    • A photocopy of the land title (if any)
    • The latest bank statements (compulsory in the absence of salary slips and/or Form J/EA Form) dating back six months/savings passbook/fixed deposits
    • Valuation report for completed houses and/or
    • If you are self-employed, you need to provide your business registration documents, latest 3 months bank statements, latest financial statements and other supporting documents to support your income


    However, some financial institutions may require additional supporting documents.

    Upon acceptance of the letter of offer, you will need to appoint a lawyer to draw up the loan documentation for you. Normally, you would select your lawyer from a list of panel lawyers provided by your financial institution. Some of these documents need to be submitted to the relevant government authorities for registration and to the Stamp Office for stamping.

    Upon completion of the above, these registered documents are then submitted to the financial institution and you will be given a copy of the Loan Agreement. In general, the timeframe for the completion of this legal process should not exceed 6 months.

  3. Fees and Charges

    There are also related costs such as professional fees and government charges that you would have to pay. Below are some of the common fees and charges you would expect to incur:
    Type Rate

    Professional Legal Fees
    Sale & Purchase Agreement

    		 1.0 % for the first RM 100,000
    0.5 % for the next RM 4,900,000

    Stamp Duties
    Loan Agreement
    Transfer of Title ( for completed properties only )

    		 0.5% of the loan amount
    1 % for the first RM 100,000
    2 % for the next RM 400,000

    Disbursement Fees
    Include fees for registration of charge, land search and bankruptcy search

    		 These fees vary by state, land office and type of property. For instance, in Selangor and Wilayah Persekutuan, the fees could range from RM 300 to RM 700

    Processing Fees
    One time fee charged by the financial institution for loan processing

    		 Rate
    RM 50
    RM 100
    RM 200    		 Range
    RM 25,001 - 30,000
    RM 30,001 - 100,000
    RM 100,000 above
    Please note that the type of charges and the amount charged might change in the future. You should meet with your financial institution's loan officer for further advice and discussion regarding any questions that you may have concerning the type of fees and legal services.

  4. Assessing Your Loan Replacement Capacity

    A common criterion is that your monthly loan instalment repayment should not be more than 1/3 of your gross monthly household income. If you have savings or fixed deposits, they can be used to support your loan application as financial institutions may take them into account in evaluating your eligibility. Different financial institutions have different criteria in calculating the repayment capacity. In the case of a floating rate loan, you should also note that your monthly repayment may increase substantially when interest rates go up.

    For example, when there is an increase in the Base Lending Rate (BLR), the interest rate on your loan will also go up, and your repayment would be higher. However, in most cases, financial institutions would allow you to pay the fixed amount of monthly repayment throughout the loan tenure and would make any adjustment caused by the variation in interest rate by increasing or shortening the loan tenure. You should check this out with your financial institution.

  5. Margin Of Financial

    The amount of financing provided by a financial institution depends on the market value (for completed properties only) or purchase price of the house, whichever is lower. The margin of financing could go as high as 95% of the value of the house.
    It is assessed on factors such as:
    • Type of property
    • Location of property
    • Age of the borrower
    • Income of the borrower

  6. Loan Tenure

    The length of a loan can range anytime up to 30 years or until the borrower reaches age 65 (or any other age as determined by the financial institution), whichever is earlier.

  7. Loan Feature

    Each financial institution packages its housing loans differently. You should examine all the features of a loan package and not just base your decision on any single feature. Pricing is just one consideration; other features like flexible repayment terms could balance the scale or even translate into greater loan savings. Financial institutions generally offer housing loan packages either in the form of a term loan, overdraft, or a combination of a term loan and overdraft.

    Common Housing Loan Packages Offered By Financial Institutions
    • Term Loan
      • A facility with regular predetermined monthly instalments. Instalment is fixed for period of time, say 30 years
      • Instalment payment consists of the loan amount plus the interest
    • Overdraft facility
      • A facility with credit line granted based on predetermined limit
      • No fixed monthly instalments as the interest is calculated based on daily outstanding balance
      • Allows flexibility to repay the loan anytime and freedom to re-use the money
      • Interest charged is generally higher than the term loan
    • Term Loan and Overdraft combined
      • A facility that combines Term Loan and Overdraft. For example, 70% as term loan and 30% as Overdraft
      • Regular loan instalment on the term loan portion is required
      • Flexibility on the repayment of overdraft portion

  8. Daily Rests vs Monthly Rests

    Financial institutions may charge you interest either on daily rests or monthly rests depending upon the products offered. In the case of daily rests, the loan interest is calculated on a daily basis, while in the case of monthly rests, interest is calculated once a month based on the previous month's balance. Under both types of loan, the principal sum immediately reduces every time a loan instalment is made.

  9. Graduated Payment Scheme

    A graduated payment scheme allows lower instalment payments at the beginning of the loan but this will gradually increase over time. This type of payment scheme will help house buyers to reduce burden of loan repayment for the first few years and allow them to allocate more money for other purposes. Over time, as earnings of house buyers increase, their repayment capabilities will also increase thus allowing higher repayment instalments at a later stage.

    A graduated payment scheme is also suitable for a house buyer who wishes to purchase a more expensive house but is restricted by his/her repayment capability during the initial years

  10. Prepayment Feasibility

    Different financial institutions may have different terms and conditions imposed on prepayments. Check the loan package to see if it allows you the flexibility to make prepayments or extra payments. Flexibility to make prepayments and paying interest on a daily rest basis, may help save considerable interest charges. It is also possible to start repayment of the loan during the construction of the house, thus saving more interest charges. What is important is to make prompt monthly repayments.

  11. Partial Prepayment Of The Outstanding Loan

    Many borrowers find it useful to shorten the loan tenure by making partial prepayments with surplus savings or annual bonus. Partial prepayments can be in any amount. However, some financial institutions may impose restrictions on the amount to be pre-paid while others may impose a penalty. It is extremely effective in reducing the interest charges you would have to pay if prepayments are made during the early years.

  12. Early Termination Penalty

    Financial institutions may impose a penalty on full repayment of loan. Generally, the penalty imposed can either be a flat rate or an 'x' number of months' of interest (e.g. 1 month's interest). This is because when a loan is granted for a certain term, the financial institution would expect the loan to be repaid over the period agreed and has planned their cash flow on this basis. An early termination of the loan would therefore disrupt the financial institution's cash flow planning. As such, some financial institutions do not charge a penalty if sufficient notice is given (as stated in the terms and conditions of the loan) or if the settlement is made after the required minimum period to maintain the loan with the financial institution has passed

  13. Documentation

    The primary documentation involved in applying for a housing loan is the loan agreement.

    A Loan Agreement is a contract signed between the buyer and the financial institution. A Loan Agreement contains major provisions such as the terms of the loan, principal sum of the loan, interest rates, default interest rate, penalty charges and repayment terms. It also sets out the duties of borrower and the lender and in the event of default, the rights and remedies of each party.

    The other common legal documents that you may need to sign are Deed of Assignments, Charge documents and Power of Attorney.

    Remember that throughout the tenure of the loan, your property is charged to the financial institution (i.e. the financial institution has a claim over your property). Whether you are buying a completed property or a property under construction, you should obtain an explanation from the attending lawyer on the major clauses of the agreement and the implications of each clause.

  14. Valuation Report

    This documentation may be required if you purchase a fully completed property from a houseowner. The financial institution will appoint a property valuer from its panel of valuers to appraise the property. The valuation fee for this service starts from a few hundred ringgit upwards, depending on the value of the property and you will be charged for this service.

  15. Insurance

    It is extremely important to take insurance coverage when you purchase a house. The most important factor is that it gives you and your loved ones peace of mind, in the form of financial security if an unfortunate event should occur.

    There are two important insurances to consider:
    • The House Owner/Fire Insurance policy
      This policy provides coverage for your property against natural disasters such as flood, fire, riot, strike and malicious damage. For properties with strata titles such as apartments or condominiums, you need not buy the insurance because the Management Corporation (MC) would have taken up insurance on the entire building. You should ensure that you obtain the sub-certificate of the Master Policy issued by the insurance company from the MC and present it to the financial institution. This is necessary so that the financial institution is aware that the property has been insured and will not buy another fire insurance on your property. In such a case, you will be required to assign your rights under the policy to the financial institution.
    • The Mortgage Life Assurance or MRTA
      This type of policy provides for full settlement of the outstanding balance of the housing loan with the financial institution, in the event of total permanent disability or death of the borrower. Premiums can usually be included in the loan amount, and the repayment period of the premium is usually spread over the loan tenure. The premium is only incurred once. There are no monthly or yearly premiums to be paid. In the event of early termination of housing loan, you will generally have the option to request for a refund of the premium for the balance of the unexpired period or to continue the insurance coverage

      Financial institutions have their own panel of insurers and most of them can arrange insurance on your behalf with the annual premium charged to your loan account.

  16. Loan Disbursement

    The financial institution disburses (pays out) the loan once it has received advice from its lawyer that the legal process has been completed and the loan documents are in order. At this time you will be informed of the date and amount of the first instalment you have to make.

    Rights And Duties Of The Borrower And Financial Institution
    Both borrower and financial institution have certain rights and duties during the course of the loan. Some of the more important ones include:
    • RIGHTS
      • Borrower
        • Right to have access to all information that would affect your borrowing decision
        • Right to be treated professionally, courteously and without prejudice
        • Right to be consulted on changes to the terms and conditions of your loan
        • Right to have accurate information on a regular basis on your loan account
        • Right to enforce legal action in the event of a breach of contract
      • Financial Institution
        • Right to have full relevant disclosure of information on borrower's credit standing
        • Right to correct and truthful information on the borrower
        • Right to timely repayment of interest/ instalments of the loan
        • Right to enforce legal action in the event of default/breach of contract
    • DUTIES
      • Borrower
        • Duty to read and understand all terms and conditions of the loan
        • Duty to observe the terms and conditions of the loan at all times
        • Duty to enquire and get clarification on all aspects of the loan to their satisfaction
        • Duty to make prompt payment on the fees, charges, interest and instalment of the loan
      • Financial Institution
        • Duty to discharge borrowers' obligations as described in the loan agreement
        • Duty to consult borrowers on any changes made to the terms and condition, fees charged and other relevant information
        • Duty to attend to all queries made by borrower

      A Loan Officer can provide invaluable assistance, and clarify issues which you are unsure. Take the time to discuss your housing loan questions with a loan officer at length so that you can choose a loan facility that best suits your needs.

top↑

4. How much is the stamp duty payable on sale transaction / tenancy?

  1. Stamp Duty on Sale Transaction / Tenancy

    House Value  Stamp Duty Payable 
    1st RM100,000.00  1%
    Next RM400,000.00  2%
    > RM500,000.00  3%
    For Example:
    House Value = RM3,600,000.00 
    1st RM100,000.00  (1%) = Rm 1,000.00 
    next RM400,000.00  (2%) = Rm 8,000.00 
    next RM3,100,000.00  (3%) = Rm 93,000.00 
    Total    = Rm 102,000.00 
    *Note: Stamp Duty shall be paid by Purchaser.  

  2. Stamp Duty on Sale Transaction / Tenancy

    Rate of Stamp Duty
      < 1 year 1 – 3 year   > 3 year
    1st RM2,400.00 Nil Nil   Nil
    Every RM250.00 1.00 2.00  4.00 
    *Note: 1st RM2,400.00 is exempted
    For Example:
    • Rental = RM2,000.00
      Tenancy Period : 2 year + 1 year (option to renew)
       
    • Stamp Duty
      { ( RM2,000.00 x 12mth ) – RM2,400.00 } / 250
      = RM86.40 (Round up to RM87.00)

      For 2 years, then RM87.00 x 2 = RM174.00 (For 1st Copy of Tenancy Agreement)
      For 2nd copy of the Tenancy Agreement, the fixed duty is RM10.00
      So, the Total Stamp Duty shall be paid by the Tenant is RM184.00

top↑

5. Brief me on Malaysia's Real Property Gain Tax 1976 (RPGT) Act.

Real Property Gain Tax Act 1976 (RPGT)

Update -  Effective 1st April, the RPGT (Real Property Gains Tax) has been exempted.

It is a TAX to be charged in respect of chargeable gain accruing on the disposal of any real property fall under this Act.

RPGT = Disposal Price – Acquisition Price

  1. Acquisition Price

    Purchase Consideration
    • (a) Fees, Commission, cost of professional services
    • (b) Cost of Transfer (Stamp Duty)
    • (c) Cost of advertising (looking for Seller)
    • (d) Compensation for damage
    • (e) Receipt of Insurance policy for damages
    • (f) Deposits forfeited

  2. Disposal Price

    Dispose Consideration
    • (a) All expenses in enhancing / preserving extension
    • (b) All expenses incurred after acquiring the asset in respect
    • (c) All incidental expenses relating to disposal (legal fee)
    • (d) Advertising cost (looking for buyer)
      *Relief: Less 10% or RM5000.00 which ever is higher for Individual

  3. Disposed by Individual

    Category of Disposal  Rate of Tax 
    Within 2 years after the date of acquisition  30%
    3rd year after the date of acquisition  20%
    4th year after the date of acquisition  15%
    5th year after the date of acquisition  5%
    6th year after the date of acquisition  Nil

  4. Disposed by Company

    Category of Disposal  Rate of Tax 
    Within 2 years after the date of acquisition  30% 
    3rd year after the date of acquisition  20%
    4th year after the date of acquisition  15%
    5th year after the date of acquisition  5%

  5. Disposed by Foreigner (Not A Citizen/Permanent Resident)

    Category of Disposal  Rate of Tax 
    Disposal within 5 years after the date of acquisition  30%
    Disposal in the 6th year after the date of acquisition  5%

top↑