The Facts About Real Property Gain Tax (RPGT)

Effective 1 January 2014, the disposal of properties in Malaysia became subject to following rate of RPGT:

DISPOSAL PERIOD* REAL PROPERTY GAIN TAX (RPGT) RATES
COMPANIES INDIVIDUAL (Citizen/PR) INDIVIDUAL (Non-Citizen*)
For disposal within 3 years 30% 30% 30%
For disposal within 4th year 20% 20% 30%
For disposal within 5th year 15% 15% 30%
For disposal within 6th year
and subsequent year		 5% 0% 5%

*The holding period of 3, 4, 5 and 6 years refers to the period between the date of the acquisition of the property and the date of disposal of such property.
*Individual non-citizens include all expatriates working in Malaysia & MM2H visa holders.

EXEMPTIONS:

Source: Based on Solicitor Remuneration Order 2005

  1. RPGT exemption on gains from the disposal of one residential property once in a lifetime to individuals;
  2. RPGT exemption of up to RM10, 000 or 10% of the net gains, (whichever is higher) from the disposal of real property by individuals; and
  3. RPGT exemption on gains arising from the disposal of real property between family members (e.g. husband and wife, parents and children, and grandparents and grandchildren).