Updates on the Real Property Gains Tax Guidelines

On January 6, 2023, the IRB issued revised Real Property Gains Tax (RPGT) guidelines to reflect the changes made to the RPGT law through Finance Act 2021.

The salient updates to the guidelines are as follows:

Paragraphs 6.1 and 6.2 have been amended to include additional examples of costs that may be charged against the disposition price, such as the cost of increasing/holding the value of a property, the cost of establishing, maintaining, or defending title to a property or a right in a property, and incidental costs of disposition.
Paragraph 11.2(b) has been amended with respect to the acquisition price of the donated asset. The acquisition price of the recipient would depend on when the donor makes the gift from his or her acquisition.
Addition of paragraph 14.4, which provides guidance on subsequent alienation by the donee/agent to a third party.
Addition of paragraph 14.3 explaining that the grant of an irrevocable power of attorney ("PA") for consideration is considered an "assignment" of real property and, therefore, an act of alienation for purposes of the RPGT.

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