Real Property Gains Tax : inherited property, date and value of acquisition

Re: real property gains tax, when disposing inherited real property

Sharing the spoken feedback I got from Duta office's 11th floor today. My queries regarded the computation of the heirs' acquisition date and value.

LHDN said, acquisition1Date by acquirer1 (heirs) is based on transfer documents' date. It is not the date of death of disposer1, nor is it the date of acquirer1's title, rather it is some date in between, corresponding to "form14a", "MOT", or "deed of assignment".

Acquisition1Value is determined internally by LHDN and their own valuers, based on acquisition1Date.

LHDN says it is ok for acquirer1 to privately hire valuer (from LHDN's panel) and to submit valuation report regarding acquisition1value, but LHDN may or may not adopt the same valuation. Private hire of valuer can be added as incidental expenses of acquisition1, reducing any chargeable RPG. Since LHDN has the final say on acquisition1Value, better to avoid private hire of valuer, and avoid form3 waiver of withholding tax. Standard process then is, acquirer2 (person who buys from heirs) withholds 3% of SPA quantum, and remits it directly to LHDN as RPGT deposit on behalf of (disposer2=acquirer1).

Disposer2 is advised to simply submit form1A without form3, then wait 3-6 months for LHDN to reply to disposer2 with notice of tax assessment, which will then indicate if disposer2 gets a deposit refund, or if disposer owes more tax than the 3% deposit withheld by acquirer2. Disposer2 may appeal the tax assessment at this time, which may then involve private hire of valuers to dispute tax assessment's acquisition1Value.