The IRB had issued a new Real Property Gains Tax (“RPGT”) Audit Framework, in line with the introduction of the RPGT self assessment system starting from 1 January 2025. The key details of the RPGT audit framework are as below:
| Categories | Details |
| Audit coverage period | RPGT audit covers disposal within the last 3 years of assessment (“YA”). However, the IRB may raise assessment for up to 5 YAs depending on the audit issues found. This limitation of period does not apply to cases involving fraud and wilful default. |
| Audit procedure | The IRB will issue an official request letter for submission of information and supporting documentation. Taxpayer is required to submit such documents accordingly within 14 days. The IRB will notify the taxpayer of its audit findings, if any, and may request the taxpayer to discuss audit findings, where required. If the taxpayer is not satisfied with the audit findings, the taxpayer can formally object within 18 days. Otherwise, the IRB will assume that the taxpayer had agreed to the audit findings. If there are additional tax assessment, the IRB will issue a notice of additional assessment to the taxpayer. Otherwise, the IRB will formally inform the taxpayer via a letter of the completion of audit, without additional tax assessment. |
| Audit timeline | RPGT audit is required to be completed within 90 calendar days, from the date of commencement of the RPGT audit. |
| Voluntary disclosure | Taxpayers can voluntary disclose at any point of time, as long as the RPGT audit has not commenced. |
| Penalty | Penalty rate at 45% |
| Penalty on voluntary disclosure | Penalty rate at 10% if voluntary disclosure is made in less than 6 months from the submission of RPGT return. If above, a penalty rate of 20% is applicable. |
Please refer to the full RPGT Audit Framework or reach out to us for further details.
