RPGT in Malaysia — What You Need to Know
Real Property Gains Tax (RPGT) is charged on the profit from selling residential or commercial property in Malaysia. The tax rate depends on your residency status and how long you held the property.
RPGT Rate Table (Current)
| Holding Period | Citizen / PR | Foreigner | Company |
|---|---|---|---|
| Up to 3 years | 30% | 30% | 30% |
| Year 4 | 20% | 30% | 20% |
| Year 5 | 15% | 30% | 15% |
| Year 6+ | 0% | 10% | 10% |
Frequently Asked Questions
What is RPGT in Malaysia?
Real Property Gains Tax (RPGT) is a tax on profits made from selling property in Malaysia. It applies to the chargeable gain — the difference between the selling price and acquisition price, less allowable expenses.
What are the RPGT rates in Malaysia?
For Malaysian citizens and PRs: 30% if sold within 3 years, 20% in year 4, 15% in year 5, 0% from year 6 onwards. For foreigners and companies: 30% within 3 years, 30% in year 4, 30% in year 5, 10% from year 6. There is also a RM10,000 or 10% exemption (whichever is higher) for individuals.
Who is exempt from RPGT in Malaysia?
Malaysian citizens and permanent residents who have owned the property for more than 5 years are exempt from RPGT. Additionally, each individual gets a once-in-a-lifetime exemption on gains from selling their primary residence.
What expenses can be deducted from RPGT?
Allowable deductions include legal fees for the sale, real estate agent commissions (typically 2–3%), renovation costs with receipts, and other capital expenditure directly related to the property. These reduce your chargeable gain.
Do I need to file RPGT if I make no profit?
You still need to file an RPGT return (Form CKHT 1A) within 60 days of the disposal, even if there is no chargeable gain. The withholding obligation on the buyer also applies regardless of profit.
