RPGT Malaysia 2026 — Real Property Gains Tax Rates

For Malaysian citizens and PR: 30% for disposal within Year 1-3, 20% Year 4, 15% Year 5, 0% Year 6 onwards. For non-PR foreigners: flat 30% Year 1-5, 10% Year 6+. For companies: same as citizens except Year 6+ is 10% (not 0%). RPGT is calculated on the chargeable gain (selling price minus acquisition price minus allowable deductions).

Legal ways to reduce or avoid RPGT: (1) Hold the property for 6+ years — citizens/PR pay 0%; (2) Claim the one-time private residence exemption (available once in a lifetime per citizen); (3) Automatic exemption of RM10,000 or 10% of chargeable gain (whichever higher); (4) Transfer between spouses or to/from own children (full exemption); (5) Gift between family members (specific conditions). Selling at a loss = no RPGT but losses can offset future gains within 5 years.

Malaysian citizens and PR are entitled to a one-time RPGT exemption on disposal of their private residence. Conditions: (1) Must be Malaysian citizen or PR at time of disposal; (2) Property must be used as residential (not commercial); (3) Exemption can only be claimed once in a lifetime; (4) Application submitted via LHDN Form CKHT 3. Use this exemption strategically on your highest-gain disposal.

No — RPGT only applies to chargeable gains (profit on disposal). If you sell at a loss, you don't pay RPGT. The loss can be carried forward for up to 5 years to offset future RPGT gains from other property disposals. You still need to file Form CKHT within 60 days of disposal to declare the transaction.

RPGT = Chargeable Gain × RPGT Rate. Chargeable Gain = Disposal Price − (Acquisition Price + Acquisition Costs + Improvement Costs − Incidental Costs). Example: Bought at RM500,000 in 2020, sold at RM700,000 in Year 4 (2024). Gain = RM200,000. After RM10,000 exemption = RM190,000. Citizen rate Y4 = 20%. RPGT = RM38,000.