Real Property Gains Tax Exemption for Medini Properties

Two Orders were gazetted under the Real Property Gains Tax Act 1976 on 31 December 2018 to exempt payment of real property gains tax on the disposal of properties in Node Medini of the Iskandar Development Region in Johor. The Orders are summarised below –
 
Real Property Gains Tax (Exemption) Order 2018
 
This Order exempts an individual, who acquires directly from the developer a whole building or part of a building or a parcel of a building, for the purpose of residential or commercial or both, in Node Medini, from payment of real property gains tax on the chargeable gains accruing on the disposal of the said property made on or after 1 January 2010 until 31 December 2020 provided that the developer from whom the property is acquired –
 
(a) is a company incorporated under the Companies Act 2016 and resides in Malaysia;
 
(b) has acquired any rights over part or the whole of the land to undertake development in Node Medini in accordance with the master plan for the Node; and
 
(c) is a developer that is approved by the Minister of Finance.
 
Real Property Gains Tax (Exemption) (No.2) Order 2018
 
This Order exempts an Iskandar Development Region status company, that acquires directly from the developer a whole building or part of a building or a parcel of a building, for the purpose of residential or commercial or both, in Node Medini, from payment of real property gains tax on the chargeable gains accruing on the disposal of the said property made on or after 1 January 2010 until 31 December 2020 provided that –
 
(1) the Iskandar Development Region status company –
 
(a) is a company incorporated under the Companies Act 2016 and resides in Malaysia;
 
(b) undertakes a qualified activity specified in the Schedule to the Order in Node Medini; and
 
(c) is approved by the Minister of Finance; and
 
(2) the developer –
 
(a) is a company incorporated under the Companies Act 2016 and resides in Malaysia;
 
(b) has acquired any rights over part or the whole of the land to undertake development in Node Medini in accordance with the master plan for the Node; and
 
(c) is a developer that is approved by the Minister of Finance.
 
The qualified activities are the activities that are specifically identified in the Schedule in the following sectors – creative industries, educational services, healthcare services, tourism, logistics services and global business services.
 
The above Orders –
 
(a) do not exempt the disposer from the requirement to submit the relevant return under the Real Property Gains Tax Act 1976; and
 
(b) are deemed to have come into operation on 1 January 2010.