Properties below RM2mil sold last year GST exempt
KUALA LUMPUR: Only commercial property and land worth over RM2mil and are sold by individuals after October last year are required to pay the 6% goods and services tax (GST).
A source from the Customs Department told Sin Chew Daily that the department had on Oct 28 last year amended the individual supply commercial property section of the Director General’s Decision.
He said the amended law had made it mandatory for property or land owners to register with the Customs Department if they planned to sell their assets worth more than RM2mil of the market price.
Failure do so could see them being fined between RM1,500 and RM20,000, he added.
“However, we have not really taken action against anyone because many people still do not know about this. We are educating them now,” the source said while urging lawyers to advise their clients of the new amendment.
He added that although the GST came into effect in April last year, property or land sold before the amendment were not affected.
Before the amendment, a person was required to only pay tax if he sold more than two properties or over one acre of commercial land.
Before October, individuals selling commercial properties were given a concession from GST because the transactions were not considered business in nature. Companies conducting sale of land or property at any value are taxed.
Previously, there was some confusion whether the buying and selling of properties could be considered as investment and not commercial transactions, and as be liable for GST.
Article Refer from http://www.thestar.com.my/news/nation/2016/02/22/properties-below-rm2mil-sold-last-year-gst-exempt/
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