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Disposal Price & Acquisition Price

  1. Disposal Price

    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.
    1. 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

       

      xx

      Less : Allowable expenses (b)

       

       
      1. The amount of any expenditure incurred for the purpose of enhancing or preserving the value of the asset, as reflected at the time of disposal

      x

       
      1. The amount of any expenditure incurred in establishing, preserving or defending disposer’s title to or right over the asset

      x

       
      1. The incidental cost of disposal

      x

      xx
      Disposal price

       

      xx
    2. Expenditure wholly and exclusively incurred on the asset disposed of as follows:
      1. Expenditure incurred on the asset at any time after its acquisition by or on behalf of the disposer for the purpose of enhancing or preserving the value of the asset, being reflected at the time of the disposal [paragraph 5(1)(a) of Schedule 2].

        For example, the cost of renovating a kitchen or expanding a warehouse for business purposes.

      2. The amount of any expenditure incurred at any time after the acquisition of the asset by the disposer in establishing, preserving or defending the title to, or a right over, the asset [paragraph 5(1)(b) of Schedule 2].

        For example, legal fees paid to defend the title of the assets acquired.

      3. Incidental cost of disposal of an asset, namely fees, commissions, and remuneration paid for the professional services of any surveyor, valuer, accountant, agent and legal adviser [paragraph 5(1)(c) and paragraph 6 of Schedule 2].
  2. Acquisition Price

    The acquisition price is the amount or value of the consideration in money or money’s worth given by or on behalf of the owner for the acquisition of the asset together with incidental cost of acquisition.
    1. The computation of the acquisition price is as follows:

       

      RM

      RM

      Consideration in money or money’s worth given by or on behalf of the owner for the acquisition of the asset

       

      xx

      Add: The incidental cost of acquisition (b)         

       

      x

       

       

      xx

      Less :                                            

       

       
      1. Compensation for any kind of damage to the asset or depreciation of asset(c)

      x

       
      1. Sum received under a policy of insurance for damage to the asset or depreciation of asset(d)

      x

       
      1. Amount of deposit forfeited to the disposer(e)  

      x

      xx

      Acquisition price

       

      xx
    2. Incidental cost of acqusition of an asset, namely fees, commission or remuneration paid for the professional services of any surveyor, valuer, agent, accountant and legal adviser [paragraph 4(1) of Schedule 2].

    3. Compensation received in respect of damage to, destruction of, or depreciation in the value of an asset [paragraph 4(1)(a) of Schedule 2].

    4. Sum received under a policy of insurance for any kind of damage or injury to or the loss, destruction or depreciation of the asset [paragraph 4(1)(b) of Schedule 2].

    5. Deposit forfeited in connection with an intended transfer of the asset or the cancellation of the disposal [paragraph 4(1)(c) of Schedule 2].
  3. Non-Allowable Expenditure

    Among the expenses that are not allowed as deductions in determining the acquisition price or disposal price of an asset are as follows:
    1. Any outgoings and expenses allowable as a deduction in computing any adjusted income or adjusted loss under the ITA.

      The expenses shall not be taken into account in computing the acquisition price or disposal price for the purpose of RPGT regardless of whether the expenses are claimed or not under the ITA.

    2. Expenditure incurred in a certain period by the disposer under Part I Schedule 5 of RPGTA for the following disposal:

      Disposal Date

      Asset Disposed

      Acquisition Date

      Non-allowable Expenditure

      1.1.2019 to 11.10.2019

      Real property or share

      Before 1.1.2000

      Expenditure incurred before 1.1.2000

      From 12.10.2019

      Real property (excluding share)

      Before 1.1.2013

      Expenditure incurred before 1.1.2013
    3. Expenditure incurred before 1.1.1970 by disposer under Part II and III Schedule 5 RPGTA.

    4. Interest paid on capital employed to acquire the asset.

    5. Fees paid to complete and submit the RPGT Return Form.
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