Presently, the rate of real property gains tax imposed on non-citizens and non-permanent resident individuals in respect of gains derived from the disposal of real property is at a flat rate of 30% irrespective of the holding period of the chargeable asset. As a measure to stimulate the development of real property, it is proposed in the Finance Bill that the rate be reduced to 5% where the disposal is after the fifth year following the date of acquisition. All disposals by non-citizens and non-permanent resident individuals before the fifth year will continue to be taxed at 30%. This amendment is to be effective from October 17, 1997.       Currently, the Director General is empowered to raise an assessment or additional assessment in respect of a year of assessment within twelve years after the end of the relevant year of assessment if it appears to him that no or no sufficient assessment has been made. It is proposed in the Finance Bill that the time frame within which a RPGT assessment or additional assessment may be raised be reduced to six years after the end of the relevant year of assessment. The proposed amendment is to be effective from January 1, 1999.

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