Revised Guidelines on Real Property Gains Tax

The IRB had issued the revised Guidelines on Real Property Gains Tax on 5 May 2011. The following are the revisions made:

Para 4 The error in Example 14 is rectified.

Para 5.3 A new Paragraph 5.3 is inserted to indicate the webpage where the guide notes for completion of the RPGT Forms can be found and downloaded.

Para 5.4 iii A new Example 16 is inserted to illustrate that disposals subject to income tax are not required file the RPGT Forms.

Para 6.2 vi Completion of Form CKHT for the circumstances where an acquirer is not required to withhold the money consideration or 2% of sale consideration, whichever is lower:

item (c) is amended to include disposals at a loss; and

item (d) is inserted for disposals to real estate investment trusts or property trust funds approved by the Securities Commission under P.U.(A) 451/2003 [Real Property Gains Tax (Exemption) (No. 4) Order 2003].

Para 9.1 ii New Paragraph 9.1(i)(c) is inserted to indicate the webpage where the guide notes for completion of Form 502 can be found and downloaded.

Para 9.3 Items ii (b) and iii are updated on the banking facilities and payment counters.

Para 10.3 A new Paragraph 10.3 is inserted requiring the acquirer to obtain the disposer’s approval for the refund of tax withheld and paid to the IRB in the case of the sale and purchase agreement being aborted.

Members may view the guidelines at the website of the Institute at Guidelines on Real Property Gains Tax