Section 7. Chargeable gains, allowable losses and tax relief for allowable losses. (Real Property Gains Tax Act 1976

Real Property Gains Tax Act 1976 (Act 169)
PART II - IMPOSITION OF THE TAX

Section 7. Chargeable gains, allowable losses and tax relief for allowable losses.

(1) Where a chargeable asset is disposed of, then-

(a) if the disposal price exceeds the acquisition price, there is a chargeable gain;

(b) if the disposal price is less than the acquisition price, there is an allowable loss; and

(2) In this section, an allowable loss means a loss suffered on the disposal of a chargeable assets which, if it had been a gain, would have been chargeable with the tax.

(3) Subsection (1) shall be subject in its operation to Schedule 2, which shall have effect for computing acquisition and disposal prices and otherwise as provided therein.

(4)(a) Where there is an allowable loss in respect of a disposal, tax relief shall be allowed in respect of such allowable loss in an amount equal to the sum arrived at by applying to every ringgit of such allowable loss the appropriate rate of tax specified in Schedule 5 in respect of the category of disposal giving rise to that allowable loss as a deduction from the total tax assessed for the year of assessment in which the disposal was made; and

(b) where, by reason of an insufficiency or absence of total tax assessed for the year of assessment in which the allowable loss arose, effect cannot be given or cannot be given in full to paragraph (a), the tax relief which has not been so allowed (or so much thereof as has not been so allowed for that year) shall be allowed for the first subsequent year of assessment for which there is total tax assessed and so on for subsequent years of assessment until the whole amount of the tax relief to be allowed has been allowed.