What Is RPGT in Malaysia?

Real Property Gains Tax is a tax administered by the Inland Revenue Board of Malaysia on gains arising from the disposal of chargeable assets situated in Malaysia.

These assets may include houses, condominiums, commercial buildings, vacant land and certain interests or rights over Malaysian real property.

RPGT is imposed on the seller or disposer. It is not automatically calculated on the full selling price. Instead, the tax is generally based on the chargeable gain after eligible acquisition costs, disposal costs and permitted deductions are taken into account.

Malaysia RPGT Rates for Individuals

The following table summarises the general RPGT rates commonly applicable to Malaysian citizens and permanent residents.

How Is RPGT Calculated?

A simplified starting point is:

Common Costs That May Be Relevant

• Original purchase price or recognised acquisition value
• Legal fees and stamp duty connected with the acquisition or disposal
• Property agent’s fee paid for the sale
• Capital improvement expenses that enhance or preserve the property’s value
• Other permitted incidental costs that are properly supported by documents

RPGT Exemptions and Reliefs Sellers Should Check

Once-in-a-Lifetime Private Residence Exemption

A Malaysian citizen or permanent resident may be able to elect for a once-in-a-lifetime exemption on the disposal of a qualifying private residence.

This election should be considered carefully because it may only be used once.

General Individual Exemption

Individuals may also qualify for a statutory exemption based on RM10,000 or 10% of the chargeable gain, whichever is higher, subject to the applicable RPGT rules.

Special or Exempt Transactions

Certain transfers, gifts, inheritance-related transactions or transactions specifically covered by relief provisions may receive special treatment.

These exemptions should not be assumed automatically. The legal relationship, transaction structure and supporting documents must be checked.

Important e-CKHT Deadlines

• The disposer generally submits the relevant CKHT return within 60 days after the disposal date.
• Online submission through the e-CKHT MyTax Portal is mandatory for applicable filings.
• For applicable disposals, the RPGT tax balance generally needs to be paid within the prescribed payment period.
• The buyer may need to retain and remit a prescribed percentage of the purchase consideration to LHDN.
• Relevant transaction and supporting records should generally be retained for at least seven years.

Seller Checklist Before Signing the SPA

• Confirm the original property acquisition date and proposed disposal date.
• Locate the original SPA, legal invoices and stamp duty receipts.
• Gather renovation and capital improvement invoices.
• Ask the appointed lawyer to estimate the RPGT position before completion.
• Check whether a private residence exemption or other relief is available.
• Prepare enough cash flow in case part of the sale proceeds is retained for RPGT remittance.
• Avoid calculating RPGT only from the difference between purchase price and selling price.

What Johor Bahru Property Sellers Often Miss

Many sellers focus on the selling price, outstanding housing loan and property agent fee, but overlook RPGT timing, legal disbursements, early loan settlement costs and the amount temporarily retained for tax remittance.

This can create a major difference between the expected net sale proceeds and the amount actually received after completion.

For owners selling properties near CIQ, RTS, JB Sentral, Danga Bay, Southkey, Tebrau or Iskandar Puteri, it is better to prepare a complete seller proceeds calculation before accepting an offer.

Frequently Asked Questions