In a transaction where the disposal price is deemed to be equal to the acquisition price, there is no chargeable gain or allowable loss to the disposer. Among the transactions are:

1. Devolution of assets of a deceased person [subparagraph 3(1)(a) of Schedule 2]
   
   The devolution of the assets of a deceased person on his executor or legatee under a will or intestacy or on the trustees of a trust created under his will.
   
   
2. Transfer of assets between husband and wife [subparagraph 3(1)(b)(i) of Schedule 2]
   
   Transfer of assets between spouses. With effect from 1.1.2018, the application of this provision is restricted to a resident who is a Malaysian citizen only.
   
   
3. Transfer of assets to a company controlled by individual or his wife, or both or with a connected person [subparagraph 3(1)(b)(ii) of Schedule 2]
   
   
   • Asset owned by an individual, his wife, or both or an individual with a connected person, by a nominee for the individual, a nominee for the wife of the individual or both or by a trustee for the individual, a trustee for the wife or both is transferred to the company resident in Malaysia or not. Effective from 1.1.2018 the transferred assets must be owned by Malaysian citizen only;
   • The company is controlled by him or his wife, or both or with a connected person, by the nominee for the individual, the nominee for the wife or both or by the trustee for the individual, the trustee for the wife of the individual or both; and
   • The consideration for the transfer must be in the form of shares in the company or at least 75% in the form of shares in the company and the balance of a money payment.
     
     If the shares [received from transaction which was not taxable under paragraph 3(1)(b) of Schedule 2] are disposed off, then the disposal of such shares is subjected to RPGT under the provision of paragraph 34 of Schedule 2 of the RPGTA.
     
     With effective from 1.1.2022, a loss suffered in respect of paragraph 34 of Schedule 2 is no longer allowable.
     
     
4. Gift to Government [subparagraph 3(1)(e) of Schedule 2]
   
   Gift of asset to the Federal Government, State Government, local authority or charitable body exempted from ITA.
   
   
5. Compulsory acquisition [subparagraph 3(1)(f) of Schedule 2]
   
   Disposal of an asset as a result of a compulsory acquisition under any law.
   
   
6. Gift [paragraph 12 of Schedule 2]
   
   
   1. Disposal of assets by way of gift (for love and affection) is deemed to be a disposal at the market value of the asset.
      
      
   2. However, if the gift is between:
      • husband and wife,
      • parents and children,
      • grandparents and grandchildren,

      the donor shall be deemed to have received no gain and suffered no loss on the disposal. Therefore the donor is not liable to tax. With effect from 1.1.2017, the donor must be a Malaysian citizen in order to enjoy the benefit under this paragraph.