Tax on Property Income in Malaysia
According to the Real Property Gains Tax Act 1976, Real Property Gain Tax (RPGT) is a form of Capital Gains Tax in Malaysia levied by the Inland Revenue (LHDN). It is chargeable upon profit made from the sale of your land or real property, where the resale price is higher than the purchase price. RPGT is levied at progressive rates, depending on the property´s ownership period or holding period prior to its sale.
Last updated by April 2024
How much is RPGT in Malaysia?
RPGT was first implemented in 1995 and it has seen quite a few changes over the years. The most recent RPGT amendment which was announced during Budget 2022 and implemented in January 2022 – is where Malaysians and permanent residents who are selling off their property in the sixth and subsequent years of ownership will no longer have to pay a 5% RPGT. Foreigners and companies, on the other hand, will have their RPGT rates maintained at 10%.
What is the RPGT rate in Malaysia?
Below are the new RPGT rates effective from January 2022
Real Property Gain Tax Rate
Foreigners
30%
1st to 5th Year
10%
6th Years Onwards
Who should pay RPGT?
RPGT is not applicable if the disposal price of a property is deemed equal to or lower than the acquisition price. It is only chargeable if there is a profit gain from the disposal of the real property.