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RPGT Malaysia: Rates, Exemptions and How to Calculate Real Property Gains Tax

In this article

RPGT estimate calculator

This calculator uses the verified deterministic rules only. It does not provide tax advice. Scenarios requiring professional review are flagged instead of producing a misleading number.

What is RPGT and who is liable?

Real Property Gains Tax (RPGT) is charged on gains from the disposal of chargeable assets in Malaysia. It applies to disposers in the year of assessment in which disposal takes place.

RPGT rates by disposer category and holding period

Rate selection depends on the disposer category under Schedule 5 and the disposal date. Historical rate windows must be used for past disposals.

Part I Schedule 5

Malaysian citizen or permanent resident individual, partnership and other non-Part II/III disposers. From 1 January 2022: 30% within two years, 30% in the third year, 20% in the fourth year, 15% in the fifth year and 0% from the sixth year.

Part II Schedule 5

Malaysian-incorporated company, trustee of a trust or Malaysian-registered body of persons. From 1 January 2019: 30%, 30%, 20%, 15% and 10% from the sixth year.

Part III Schedule 5

Non-citizen or non-permanent-resident individual, their executor, or company not incorporated in Malaysia. From 1 January 2019: 30% for the first five years and 10% from the sixth year.

How to calculate chargeable gain

Disposal price is consideration less allowable expenses. Acquisition price is consideration plus incidental acquisition costs, less compensation, insurance receipts and forfeited deposits.

Allowable expenditure

  • Expenditure after acquisition to enhance or preserve value, reflected at disposal.
  • Expenditure to establish, preserve or defend title or rights.
  • Incidental costs of disposal, including fees, commissions and remuneration for surveyors, valuers, accountants, agents and legal advisers.

Non-deductible expenditure

  • Expenses deductible under the Income Tax Act 1967.
  • Interest paid on capital employed to acquire the asset.
  • Fees to complete and submit the RPGT return form.
  • Certain historical expenditure subject to date and asset-type restrictions.

Exemptions

RM10,000 or 10% exemption

Individuals may claim RM10,000 or 10% of chargeable gain, whichever is higher. For partial disposals from 31 December 2015, the RM10,000 component is apportioned by area or share count.

Private-residence exemption

The section 8 exemption is available once in a lifetime to a Malaysian citizen or permanent resident individual for one private residence. Election must be made through CKHT 3 electronically and cannot be withdrawn.

Worked example

A Malaysian citizen sells a property after six years. Chargeable gain before exemption is RM155,000. The exemption is RM15,500. The Part I rate from 1 January 2022 for the sixth year or later is 0%, so estimated RPGT is RM0. Section 21B retention may still apply and is separate from final tax.

Documents to retain

Retain sale and purchase agreements, valuation evidence, renovation invoices, legal and agent invoices, and payment records. From 1 January 2025, documents must be retained for seven years.

FAQs

Can I deduct renovation costs from RPGT, and what evidence should I retain?

Renovation or improvement costs may be allowable where they enhance or preserve value and are reflected in the disposal value. Retain invoices, scope of works and valuation evidence. Repairs and maintenance are not listed as allowable on the official page.

Are legal fees, agent commissions and stamp duty deductible?

Legal fees and agent commissions may be allowable as incidental costs. Stamp duty is not listed as an allowable incidental cost and requires professional review.

How does the once-in-a-lifetime private-residence exemption work?

It applies to one private residence for a Malaysian citizen or permanent resident individual. The election is made through CKHT 3 and cannot be withdrawn.

What is the RM10,000 or 10% exemption on chargeable gains?

It is an individual exemption of RM10,000 or 10% of chargeable gain, whichever is higher.

Sources

Last reviewed: 2026-10-27.

Need help checking an RPGT position before filing? Contact our tax team through the existing enquiry form.

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