RPGT

Real Property Gains Tax (RPGT)


RPGT 
is a form of Capital Gain Tax that is imposed on the disposal of property in Malaysia.

Based on the Real Property Gain Tax Act 1976, RPGT is a tax on chargeable gains derived from disposal of property. A chargeable gain is the profit when the disposal price is more than purchase price of the property.

You will be only be taxed on the positive net capital gains which is disposal price less the purchased price less the miscellaneous charges such as; (stamp duty, legal fees, advertisement charges, etc). Additionally, a waiver on the taxable amount is granted to individuals (but not companies). The holding period is from the date on the S&P agreement till to the disposal date. For a simple and a quick calculation, the formula is;

 

Chargeable Gain = Disposal Price - Purchased Price

Net Chargeable Gain  = Chargeable gain - Cost (Agency fee , Legal fee and Renovation fee etc..)

Tax payable = RPGT rate (based on holding period)* Net Chargeable Gain

 

  Holding Period  

               RPGT Rate in 2020

  Company  

  Citizens  

  Non-Citizens  

   ~ 3 years

      30%

     30%

         30%

    4 years

      20%

     20%

         30%

    5 years

      15%

     15%

         30%

    6 years ~

      10%

       5%

         10%