Real Property Gain Tax

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About Real Property Gain Tax (RPGT)

Real Property Gain Tax (RPGT) is a tax on chargeable gain derived from the disposal of property. A chargeable gain is a profit when the disposal price is more than the pruchase price of the property.

RPGT RATES CLASSIFICATION

Disposal

Citizens / PR

Non-Citizens

Companies

Less or equal to 3 years

30%

30%

30%

Less or equal to 4 years

20%

30%

20%

Less or equal to 5 years

15%

30%

15%

More than 5 years

5%

10%

10%

For a quick calculation, the formular is

Chargeable Gain

=

Disposal Price

–

Purchased Price

–

Miscellaneous

Costs

Net Chargeable

Gain

=

Chargeable Gain

–

Exemption Waiver*

* (RM10,000 or 10% of chargeable gain, whichever is higher)

Tax Payable

=

RPGT Rate*

(based on holding period)

* Net chargeable gain

RPGT Exemptions

  1. Exemption on gains from the disposal of private residential property once-in-a-lifetime to an individual (please utilise this once in lifetime opportunity wisely).
  2. Exemption on gains arising from the disposal of real property between family members (eg. husband and wife; parents and children; grandparents and grandchildren).
  3. 10% of profits OR RM10,000 per transaction (whichever is higher) is not taxable.
  4. Low cost, low-medium cost and affordable housing priced below RM200,000 will be exempted from RPGT.

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