What is RPGT rates?

RPGT stands for Real Property Gain Tax

Capital gains are generally not subject to income tax in Malaysia.However, real property gains tax is charged on chargeable gains arising from the disposal of real property situated in Malaysia or of interest, options or other rights in or over such land as well as the disposal of shares in real property companies.

Effective date: from 1st January 2014
A) For Malaysian citizen
RPGT sold before 3 years - 30%
Up to 4 yrs - 20%
Up to 5 yrs - 15%
After 5 yrs - 0%

B) for Malaysian
Incorporated companies
Same as above up to 5 yrs but after 5 yrs - 5%

C) for Foreigners
Property must be from 1 mil onward.
RPGT - 30% for first 5 yrs n 5% after 5th year onwards.

Current 6% Govt Service Tax remain collectable up to 31 March 2015. GST 6% will start from 1st April 2015. Details will be announced soon by LHDN.

The RPGT rates will not burden genuine property owners as they are given exemption and the payment of RPGT is based on net gains as follows:

RPGT exemption on net gains from the disposal of one unit residential property once in a lifetime by an individual who is a citizen or a permanent resident of Malaysia;

RPGT exemption on gains from disposal of property between parents and children, husband and wife, grandparents and grandchildren;

RPGT is charged only on net gains after deducting all related costs such as purchase price, renovation costs and incidental cost e.g legal fees;

Exemption up to RM10,000 or 10% of the net gains, whichever is higher, is given to an indivdual.

For further information on company and individual tax, visit http://www.hasil.gov.my/

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