20190110 (Thu)
What is the date of disposal? When I sign the Sale and Purchase Agreement? Or is it when the title is transferred? Part 1
In Real Property Gains Tax Act 1976 (RPGT), there are considerations on date of disposal and acquisition because it can affect the calculation.
For example, there is a 5% RPGT on property disposed from 1st Jan, 2019 despite being held more than 5 years. Hence, many are disposing their property ahead of 2019 in order to avoid paying this tax.
Would the date of disposal be the date of signing of SPA, or SPA stamping date or date of title transfer?
This question has been asked and it seems to have various interpretation of the law.
Tomorrow we will discuss this question.