Real Property Gains Tax Act 1976 (Act 169)



THIRD SCHEDULE [Section 8]

PRIVATE RESIDENCES

1. In this Schedule "the exemption" means the exemption provided by section 8.

2. Subject to paragraph 3, a building or a part of a building is not owned by any person for the purposes of this Schedule unless he is registered under the law relating to the registration of title to land as proprietor of the land on which it stands or as the holder of a lease of that land or he was the purchaser of that land under an agreement for the purchase and sale of that land.

3.(1) (a) A private residence owned and occupied by an individual's wife or by an individual and his wife jointly shall, for the purposes of this Schedule only, be deemed to be owned and occupied by the individual.

    (b) A private residence owned and rented out by an individual's wife or by an individual and his wife jointly for occupation as a place of residence shall, for the purposes of this Schedule only, be deemed to be owned and rented out by the individual:

Provided that where an individual is not a citizen and not a permanent resident but the wife is a citizen or a permanent resident this paragraph shall not apply.
[Ins. Act 323:s:40]
(2) Where an individual receives the benefit of the exemption on a gain accruing in respect of the disposal of a private residence to which subparagraph (1) applies, nothing in that subparagraph or in any other provision of this Act shall operate so as to render his wife chargeable with the tax on the same gain.

4. Subject to this Schedule, a private residence is a building or part of a building in Malaysia owned by an individual and occupied or certified fit for occupation as a place of residence.
[Ins. Act 364:s:25]

5.-8. (Repealed by Act A431)

9. (1) Subject to this paragraph, an individual is entitled to the exemption under section 8 in respect of the disposal of one private residence only:

Provided that-

    (a) the elects that such exemption shall apply to that private residence;

    (b) on such election being made, there shall be no further exemption in respect of the disposal of any of his other private residences; and

    (c) the election so made shall be in writing addressed to the Director General and shall be irrevocable.

(2) No election under subparagraph (1) shall be made where an exemption has been granted to an individual under any repealed provisions of this Act or the repealed Land Speculation Tax Act 1974 in respect of the disposal of his private residence.


10.-11. (Repealed by Act A 431)

12. Where a gain accrues or a loss is suffered in respect of the disposal of a building which is only partly occupied as a private residence, the portion of the gain which is not chargeable or, as the case may be, the portion of the loss which is not allowable shall be arrived at as follows-

    (a) where the building is divided into parcels each of which is capable of being occupied as a self-contained dwelling or self-contained business premises the gain or loss shall be divided by the total number of parcels and the resulting sum shall be deemed to be the gain or loss attributable to each parcel, including the parcel so occupied;

    (b) where the building is not so divided then, unless the disposer can satisfy the Director General that some other method of computation is more equitable, the portion of the gain or loss attributable to the part so occupied shall be a portion having the same relation to the whole gain or loss as the floor area of the part so occupied has to the total floor area of the building.

13. (1) Subject to subparagraph (2), where a part of the land attaching to a private residence as its gardens or grounds is disposed of without the residence, then-

    (a) if the land on which the residence stands was acquired by the disposer without the residence, the acquisition price of the part disposed of shall be deemed to be a sum bearing the same proportion to the acquisition price of the total area of the land as the area of the part disposed of bears to that total area, and any gain or loss accruing or suffered in respect of the disposal shall be chargeable or allowable, as the case may be;

    (b) if the land on which the residence stands was acquired by the disposer with the residence and the total area of that land exceeds one acre-

      (i) the acquisition price of the land without the residence shall be deemed to be one-third of the acquisition price of the land with the residence;

      (ii) the acquisition price of the part disposed of shall be deemed to be a sum bearing the same proportion to the acquisition price of the land without the residence as the area of the part disposed of bears to that total area; and

      (iii) any gain or loss accruing or suffered in respect of the disposal shall be chargeable or allowable, as the case may be;

    (c) if the land on which the residence stands was acquired by the disposer with the residence and the total area of that land is one acre or less, there shall be deemed to accrue to the disposer a chargeable gain consisting of a sum bearing the same proportion to the disposal price as the area of the part disposed of bears to that total area.

(2) Where the acquisition by the disposer referred to in subsubparagraphs (1) (a) and (b) was made prior to 1 January 1970, in applying the formula specified in subsubparagraphs (1) (a) and (b) there shall be substituted for the acquisition price of the total area of the land referred to in subsubparagraph (1) (a) and the acquisition price of the land with the residence referred in subsubparagraph (1) (b) the market value of the land as at 1 January 1970.
[ Am. Act A431; Act 323 ; 364 ]

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