Latest news with #RealPropertyGainsTax
The Sun
5 days ago
- Business
- The Sun
CAP backs vacancy tax to tackle property speculation in Malaysia
GEORGE TOWN: The Consumers Association of Penang (CAP) has voiced strong support for implementing a vacancy tax on residential properties left unoccupied for long periods. CAP president Mohideen Abdul Kader stated that such a measure is crucial to reducing property speculation and making housing more affordable for Malaysians. 'A vacancy tax typically applies to properties that remain vacant—unsold or unrented—for more than six months in a year. 'In countries such as Canada and Australia, particularly in cities like Melbourne, this tax is set at between one and three per cent of the property or land value,' he said. Mohideen explained that the tax aims to discourage speculative investments, especially in the medium-cost housing segment, where rising prices in the subsale market have made homeownership unattainable for middle-income earners. He highlighted that many urban properties remain empty while thousands struggle to find affordable homes. 'A vacancy tax would act as a strong disincentive to leave properties idle and would encourage owners to either rent out or sell them, returning more units to the active housing market,' he added. CAP also urged the government to reassess the Real Property Gains Tax and stamp duty, proposing higher rates for short-term property sales and additional home purchases. Mohideen called for tighter restrictions on foreign buyers and stricter housing loan policies for individuals owning multiple properties, including lower loan-to-value ratios to deter speculative borrowing. 'Unless the government introduces comprehensive policy reforms, Malaysia's housing sector will continue to favour investors at the expense of ordinary citizens. It is the government's duty to uphold the principle that housing is a fundamental right, not a speculative commodity,' he stressed. - Bernama
New Straits Times
6 days ago
- Business
- New Straits Times
CAP calls for vacancy tax, tighter controls to curb property speculation
GEORGE TOWN: The Consumers' Association of Penang (CAP) has called for the introduction of a vacancy tax on residential properties that are left unoccupied for extended periods. It also called on the government to review and strengthen the Real Property Gains Tax (RPGT). CAP president Mohideen Abdul Kader said these measures were urgently needed to address the deepening problems of property speculation and declining housing affordability in Malaysia. "A vacancy tax typically applies to properties that remain vacant — unsold or unrented — for more than six months in a year. "In countries such as Canada and Australia, particularly in cities like Melbourne, this tax is set at between one and three per cent of the property or land value. "Its primary aim is to deter property speculation, particularly in the medium-cost segment, where rising prices in the subsale market have increasingly placed home ownership beyond the reach of middle-income earners," he said in a statement today. According to the Khazanah Research Institute, housing prices in Malaysia rose by an average of 5.8 per cent per year between 2010 and 2022, well above the healthy growth range of three to four per cent. As a result, many in the M40 income group found it difficult to purchase their own homes. In urban areas, the typical 'modern' three-bedroom apartment ranges from 800 to 1,000 square feet. Mohideen said this limited space was not conducive to multi-generational or extended family living, nor does it offer adequate privacy or comfort for those forced to share with other families. "Speculators often compete directly with genuine homebuyers, inflating demand and thereby encouraging developers to acquire more land to keep up with what is essentially artificial pressure. "In land-scarce areas like Penang, this has resulted in a rise in land prices and a growing reliance on costly land reclamation from the sea. "It is also worth noting that many apartment blocks are not fully occupied, despite having been sold. In these developments, owners of vacant units — who are not living in them and cannot easily sell or rent them out —often neglect their obligations to pay maintenance fees. "This undermines the upkeep of the building and penalises residents who do live there. At present, many residential properties, particularly in urban centres, remain empty while thousands of Malaysians continue to struggle to find homes they can afford," he added. The property market, Mohideen noted, had become increasingly dominated by those who treat housing as a speculative investment rather than a basic human need. He said this trend had led to inflated prices and a false sense of scarcity, especially in cities where housing demand is greatest. "A vacancy tax would act as a strong disincentive to leave properties idle and would encourage owners to either rent out or sell them, returning more units to the active housing market. "In addition, CAP also calls on the government to review and strengthen the RPGT, as the current system fails to adequately discourage short-term speculation. "We propose a more progressive model that imposes significantly higher tax rates on profits from properties sold within a short holding period," he added. Mohideen also called for a revision of stamp duty rates and tighter controls on housing loans. He said that unless the government introduced comprehensive policy reforms, Malaysia's housing sector would continue to favour investors at the expense of ordinary citizens.
The Sun
14-07-2025
- Business
- The Sun
LHDN e-TT system temporary closure from July 17 to 21
PUTRAJAYA: The Inland Revenue Board (LHDN) has announced a temporary shutdown of its electronic telegraphic transfer (e-TT) system from July 17 to 21 for system enhancements. Two major upgrades will be implemented during this period. The first is a new feature allowing taxpayers to generate a virtual account (VA) number using their bill number. The second is an automated receipt system that will send payment confirmations directly to taxpayers' email addresses once transactions are processed by LHDN's agent bank. For Income Tax and Real Property Gains Tax payments, receipts can still be accessed through the e-Lejar app or the Withholding Tax Payment Statement by logging into the MyTax portal at using identification documents. LHDN stated, 'Once the e-TT system reopens on July 22, taxpayers will be required to generate a new VA number to proceed with payment.' During the downtime, taxpayers are encouraged to use alternative payment methods such as PFX on LHDN's official portal, appointed agent banks, or Pos Malaysia. Payments can be made via over-the-counter transactions, internet banking, ATMs, or at the Kuala Lumpur Revenue Collection Management Centre. Further details on payment options are available on LHDN's official portal under the quick access menu: Service > Individual > *Individual Life Cycle > Payment > Mode of Payment. - Bernama
Barnama
14-07-2025
- Business
- Barnama
LHDN's e-TT System To Be Temporarily Closed From July 17 To 21
PUTRAJAYA, July 14 (Bernama) -- The Inland Revenue Board's (LHDN) electronic telegraphic transfer system (e-TT) will be temporarily closed from July 17 to 21 to facilitate system enhancements. It said in a statement today that two key improvements will be introduced: a new feature to generate a virtual account (VA) number using the bill number, and a mechanism to automatically send payment receipts directly to taxpayers' email addresses once payment is received by LHDN's agent bank. LHDN said copies of receipts, limited to Income Tax and Real Property Gains Tax, can also be accessed via the e-Lejar application or the Withholding Tax Payment Statement by logging in with identification documents via the MyTax portal at
The Star
09-06-2025
- Business
- The Star
Navigating Malaysia's evolving tax landscape
Malaysia's tax environment is undergoing a significant transformation. With the Inland Revenue Board of Malaysia (IRBM) reaffirming its commitment to national tax governance, tax compliance is being reinforced through strategic partnerships, targeted programmes, and the deployment of advanced data analytics, which demands far more than routine filings. The shift to the self-assessment system (SAS) across more tax types, combined with the recent tightening of the Tax Investigation Framework, signals that businesses must now adopt a more proactive and strategic approach to managing their tax affairs or risk penalisation under an increasingly vigilant tax authority. Paradigm shift in responsibility Malaysia's transition to the SAS, which began with income taxes in the early 2000s, marks a significant reform in tax administration. The SAS has now been extended to cover Real Property Gains Tax from Jan 1, this year, with phased implementation for Stamp Duty beginning from Jan 1, next year. This transition aims to promote voluntary compliance while reducing administrative burdens. Under SAS, the responsibility for correctly interpreting and applying tax laws rests squarely on taxpayers. They must accurately compute and declare their own tax liabilities. Errors or omissions may lead to tax adjustments and penalties. Businesses are expected to proactively estimate their tax positions, monitor them routinely to avoid underestimation penalties, and ensure their accounting systems are equipped to meet SAS demands. To support this shift, IRBM has issued public rulings, guidelines, and practice notes, simultaneously intensifying audit efforts to ensure compliance. Evolving tax enforcement Under the current structure, the Strategic Compliance Branch and Criminal Investigation Branch are led by one of the IRBM's deputy chief executive officer. In each state, the respective state IRBM director oversees the strategic compliance and tax audit functions. While there is only one Criminal Investigation Branch serving the country, as our nation strengthens its focus on tax compliance, IRBM is ensuring comprehensive coverage in its enforcement. The Strategic Compliance Branch focuses on high-risk taxpayers, employing in-depth investigation procedures (following a tax investigation framework) including surprise visits and on-the-spot document and data requests. Meanwhile, the Criminal Investigation Branch handles serious tax crimes, such as fraud and wilful concealment, often collaborating with other enforcement agencies. A key enforcement priority is real transaction verification. Auditors now examine cash flows, supplier accounts, and capital statements to confirm the legitimacy of transactions. These audits carry significant authority, with findings potentially leading to immediate penalties or legal action. The compliance pyramid IRBM's enforcement strategy is increasingly guided by a compliance-pyramid model, similar to that adopted by the Australian Taxation Office. This model segments taxpayers based on behavioural profiles – from compliant to non-compliant – and tailors enforcement strategies accordingly. At the base of the pyramid are educational initiatives, reminders, and simplification measures for those willing to comply but lacking resources. The next tier involves facilitation through programmes such as Tax Corporate Governance and audits. At the apex are the shadow economy and deliberate tax evaders – groups with persistently low compliance levels – which are the primary focus of strategic compliance efforts and investigations. Where are we now? Tax investigations in Malaysia are becoming increasingly rigorous and data-driven. Unlike routine audits, investigations involve unannounced visits, document seizures, and interviews. The updated Tax Investigation Framework, effective May 31, last year, provides greater transparency and clearly defines the roles and responsibilities of all parties involved. Recent media coverage has widely reported IRBM's enforcement activities, including high-profile cases involving celebrities and corporations. These headlines raise questions about whether all featured taxpayers are truly evaders or if public perception is shaped by sensationalised headlines. With over eight million taxpayers and a compliance rate exceeding 80%, IRBM is now intensifying their focus on fraud and evasion. The phased implementation of e-Invoicing is expected to further enhance transparency, enabling real-time transaction monitoring and reducing black-market activity. Be prepared, stay compliant It is prudent for businesses to proactively plan their tax structures, upgrade accounting systems, and consider integration or artificial intelligence. When receiving correspondence from IRBM, it is crucial to identify the issuing branch as this will indicate whether it pertains to an educational audit, civil investigation, or criminal investigation. Understanding the nature of the audit is the first step toward crafting a measured response. Above all, businesses should remain calm, be aware of their rights, and engage professional advisors where necessary. Rather than seeking shortcuts, invest in staff training, conduct regular risk assessments, and maintain robust records to ensure compliance in this evolving landscape. Soh Lian Seng is head of tax for KPMG in Malaysia. The views expressed here are the writer's own.
