The disposal price is the amount or value of the consideration in money or money's worth for the disposal of the asset less the allowable expenses.
- The computation of the disposal price is as follows:
RM RM The amount or value of the consideration in money or money's worth for the disposal of the asset XXXLESS: Allowable expenses (b) i)The amount of any expenditure incurred on the asset for the purpose of enhancing or preserving the value of the asset, being expenditure reflected at the time of disposal XXii)The amount of any expenditure incurred in establishing, preserving or defending disposer's title to or right over the asset XXiii)The incident cost of disposal XXXXXDisposal price XXX - The amount of expenditure wholly and exclusively incurred on the asset disposed of, are as follows:
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- Expenditure incurred for the purpose of enhancing or preserving the value of the asset, being reflected at the time of the disposal. For example additional works on building that has been acquired, and the construction cost of the building on vacant land that has been acquired [paragraph 5(1)(a) of Schedule 2].
- The amount of any expenditure incurred at anytime after his acquisition of the asset by the disposer in establishing, preserving or defending his title to, or to a right cover, the asset. Eg. Legal fees paid to defend ownership of the assets acquired [paragraph 5(1)(b) of Schedule 2].
- The incidental cost to the disposer of making the disposal such as fees, commission or remuneration paid for the professional services of any surveyor, valuer, agent and legal adviser [paragraph 5(1)(c) of Schedule 2].
- Expenditure incurred for the purpose of enhancing or preserving the value of the asset, being reflected at the time of the disposal. For example additional works on building that has been acquired, and the construction cost of the building on vacant land that has been acquired [paragraph 5(1)(a) of Schedule 2].
Where an asset is disposed of, was acquired by the disposer prior to 1.1.1970, the amount of expenditure incurred prior to 1.1.1970 shall be disregarded.
With effect from 1.1.2019, where a disposal is subject to tax under Part 1 of Schedule 5, references to 1.1.1970 shall be construed as references to 1.1.2000.
With effect from 12.10.2019, where a disposal is subject to tax under Part I of Schedule 5, references to 1.1.1970 shall be construed as references to 1.1.2013. However, the amendment does not apply to the disposal of shares under paragraph 34 of Schedule 2 and shares in a real property company under paragraph 34A of Schedule 2.