How much is the Real Property Gains Tax (RPGT) when selling a property?
Real Property Gains Tax (RPGT) in Malaysia is a tax on the profit from selling property, with rates for citizens ranging from 30% (within 3 years) to 0% (6+ years). Foreigners pay a flat 30% for the first 5 years and 10% thereafter. The tax is calculated on the net gain after allowable expenses.
RPGT Rates for Individuals
| Disposal Period | Malaysian Citizens/PR | Foreigners |
|---|---|---|
| Within 3 years | 30% | 30% |
| 4th Year | 20% | 30% |
| 5th Year | 15% | 30% |
| 6th Year & Beyond | 0% | 10% |
Key Details
- Exemptions: Malaysians/PRs are entitled to a once-in-a-lifetime exemption on the chargeable gain for the disposal of a private residential property.
- Calculation: The tax is imposed on the net chargeable gain (Selling Price – Purchase Price – Allowable Costs).
- Deadlines: The disposal form must be submitted within 60 days of the sale.
- Companies: Companies pay 30% (years 1-3), 20% (year 4), 15% (year 5), and 10% (year 6+).