13 January 2015, by Low Beng Choo, Chairperson, Conveyancing Practice Committee
Circular No 008/2015
Dated 13 Jan 2015
To Members of the Malaysian Bar
Amendment to Section 21B(1) of the Real Property Gains Tax Act 1976
The Finance (No 2) Act 2014 amended, inter alia, section 21B(1) of the Real Property Gains Tax Act 1976 (“Act”). The amendment came into effect on 1 Jan 2015.
Section 21B(1) of the Act, which relates to the retention sum for real property tax purposes, is amended by substituting the word “two” with “three” per cent. The amended section 21B(1) of the Act reads as follows (amendment as marked below):
21B. Duty of acquirer to retain and pay part of the consideration.
(1) Where on a disposal to which section 13 applies, the consideration consists wholly or partly of money, the acquirer shall retain the whole of that money or a sum not exceeding three per cent of the total value of the consideration whichever is the less, and (whether or not that amount is so retained) he shall within sixty days after the date of such disposal pay that amount to the Director General:
Provided that the Director General may under special circumstances allow extension of time for that amount to be paid over.
Please find attached the Finance (No 2) Act 2014 for your reference.
Should you have any enquiries, contact Chuah Ying Ying, Executive Officer, by telephone at 03-2050 2106, or by email at yingying@malaysianbar.org.my.
Thank you.
Low Beng Choo
Chairperson
Conveyancing Practice Committee