The Way to Reduce CKHT

Real Property Gain Tax, Any Discount on It?

Real Property Gain Tax (“RPGT”) a tax levied by the Inland Revenue Board (IRB) on chargeable gains derived from the disposal of real property. As a vendor or a property investor, after informed by Inland Revenue Board that RPGT will be imposed on your sold property then the next question would be whether the owner can reduce the chargeable tax and what kinds of expenses or items can be used for exemption and/or reduction of tax.

1. Legal Fees, Disbursement and Reimbursement

   Legal Fees, Disbursement and Reimbursement referred herein are all the legal cost, disbursement and reimbursement that the landowner spend when they acquired the property, the legal cost they spend when they sell the property, legal cost for Perfection of Transfer and Charge, legal cost for extension of lease, legal cost for Amalgamation and any other legal cost that related to the Property.

2. Booking fee and/or agent fees

   If the property is disposed through property agent or any agency company. The agent fees or commission of agent can be submitted for deduction of RPGT.

3. Renovation cost and expenses

   Renovation cost and expenses incurred on the Property can be used for the reduction of the RPGT provided that the receipts and/or the payment proofs of the property are submitted to solicitor and IRB during the filing of tax

4. Any cost or expenses that incurred to maintain the value of the Property

   such as the reparation of gate, window, aircon, plumbing upgrade service and etc which help to maintain the value of the Property.

   Kindly be informed that the receipt and/or the payment proof of the abovementioned items need to be submitted to IRB for deduction of tax.

If you have any questions or require any additional information, please contact our lawyer that you usually deal with.

This article is written by 

Toh Chin Lee
Partners, Low & Partners

Julene Ngui Yew Feng
Legal Associate, Low & Partners