FAQ - PropertyLink

Malaysia Budget 2019 Real Property Gains Tax (RPGT)

REAL PROPERTY GAINS TAX (“RPGT”) WITH EFFECT FROM 1 JANUARY 2019:-

Period Malaysian Company Non-Malaysian

Disposed within first 3 years 30% 30% 30%
Disposed in 4th year 20% 20% 30%
Disposed in 5th year 15% 15% 30%
Disposed after 5th year 5% 10% 10%

Information from Malaysian Budget 2019 dated 2 November 2018
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Malaysia Budget 2019 Stamp Duty Scale For Sale Of Properties

MALAYSIA BUDGET 2018 STAMP DUTY SCALE FOR SALE OF PROPERTIES TRANSACTED BEFORE 31 DECEMBER 2018

First RM100,000 1%
RM100,001 To RM500,000 2%
RM500,001 and above 3%

MALAYSIA BUDGET 2019 STAMP DUTY SCALE FOR SALE OF PROPERTIES TRANSACTED WITH EFFECT FROM 1 JANUARY 2019

First RM100,000 1%
RM100,001 To RM500,000 2%
RM500,001 To RM1,000,000 3%
RM1,000,001 and above 4%

Dated: 2 NOVEMBER 2018
Extracted from hasil.gov.my
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How much is the Stamp Duty payable when renting a property?

Stamp Duty Computation for 1 year tenancy: (monthly rent x 12 – 2400) / 250

For example if the monthly rental is RM8,000: (8000 x 12 – 2400) / 250 = RM374.40

Stamp Duty Computation for 2 years tenancy: 2 x (monthly rent x 12 – 2400) / 250

For example if the monthly rental is RM 8,000: 2 x (8000 x 12 – 2400) / 250 = RM 748.80

How much is the Real Property Gains Tax (RPGT)?

Every Malaysian is entitled to one off waiver of RPGT.

With effect from 1 January 2018:-

	Malaysian	Company	Non-Malaysian
Disposed within 3 years	30%	30%	30%
Disposed in 4^th year	20%	20%	30%
Disposed in 5^th year	15%	15%	30%
Disposed after 5 years and above	0%	5%	5%

Dated: 14 NOVEMBER 2017

Extracted from hasil.gov.my

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How much is the Legal Fees Payable when Buying a Property?

The legal fees payable to a lawyer acting for you when you buy a property is calculated based on the purchase price as follows:

For the first RM150,000, the legal fees payable is 1%
For the next RM850,000, the legal fees payable is 0.7%
For the next RM2,000,000, the legal fees payable is 0.6%
For the next RM2,000,000, the legal fees payable is 0.5%
For the next RM2,500,000, the legal fees payable is 0.4%
For the remaining, if any, negotiable

For instance, if the purchase price is RM1,000,000. The calculation is as follows:

Total legal fees payable: (RM150,000 X 1%) + (RM850,000 X 0.7%) = RM 7,450.00

Are there any rules for foreigners buying a property in Malaysia?

Any foreigner may purchase any number of properties in Malaysia, subject to the minimum price established for foreigners by the different states. It is important to check state laws before making any commitment, as the minimum purchase price is not standardized between states.

Minimum in the Federal Territory: RM1,000,000

Minimum in Selangor: RM2,000,000

How much is the Agent Commission when selling a property?

The seller pays a maximum of 3% of the purchase price as commission.

How much is the Agent Commission when a property is rented out?

When renting a property, the Landlord pays one month rental as commission.

How much is the Stamp Duty payable when purchasing a property?

With effect from 1 January 2018,

A purchaser of a property has to pay stamp duty to the Malaysian Government when he buys a property.

How to calculate the stamp duty payable?

For the first RM100,000, the stamp duty payable is 1%
For the next RM400,000, the stamp duty payable is 2%
For the next RM500,000, the stamp duty payable is 3%
For any sum exceeding RM1,000,000, the stamp duty payable is 4%.

For instance, if your purchase price is RM1,300,000. The calculation is as follows:

Total stamp duty payable:

(RM100,000 X 1%) + (RM 400,000 X 2%) + (500,000 X 3%) + (300,000 X 4%) = RM36,000.

Dated: 8 NOVEMBER 2017

Extracted from hasil.gov.my

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