Estimate your Real Property Gains Tax before you sign the SPA. Rates for citizens, companies and foreigners, with the automatic RM10,000 / 10% exemption applied — and a warning if waiting one more year saves you the entire tax.
Legal fees, stamp duty on purchase, agent commission, permanent renovations.
Real Property Gains Tax (RPGT) is charged under the Real Property Gains Tax Act 1976 on the profit from selling Malaysian real property. The rate depends on who you are and how long you held the property, counted from acquisition to disposal (usually SPA date to SPA date).
| Disposal in | Citizen / PR | Company | Foreigner |
|---|---|---|---|
| Years 1–3 | 30% | 30% | 30% |
| Year 4 | 20% | 20% | 30% |
| Year 5 | 15% | 15% | 30% |
| Year 6 onwards | 0% | 10% | 10% |
The chargeable gain is the disposal price minus the acquisition price and allowable costs (legal fees, stamp duty on purchase, agent commission, and permanent improvements). Individuals then deduct an automatic exemption of RM10,000 or 10% of the gain, whichever is higher, before applying the rate. Malaysian citizens may also claim a once-in-a-lifetime full exemption on a private residence.
Since 2025, RPGT is self-assessed: LHDN no longer issues assessment notices, and both seller and buyer must e-file CKHT forms within 60 days of disposal. The buyer's lawyer retains 3% (citizens) or 7% (foreigners) of the price as an advance payment to LHDN.
This tool gives you the numbers. Our lawyers in Cheras, Selangor can advise on your specific situation. Free legal advice and quote via WhatsApp.
WhatsApp Us NowMalaysian citizens and permanent residents pay 0% RPGT on disposals from the 6th year of ownership onwards, counted from the acquisition date. Selling even shortly before the 6-year mark puts you in Year 5 at 15%, so timing the SPA date matters.
Allowable deductions include legal fees on purchase and sale, stamp duty paid when buying, estate agent commission, advertising costs to sell, and permanent improvements such as extensions or structural renovation. Routine repairs, maintenance, and loan interest are not deductible.
No tax is payable if there is no chargeable gain, but you must still file the CKHT forms with LHDN within 60 days. An allowable loss can be carried forward and set off against future RPGT gains.
Every Malaysian citizen may elect a full RPGT exemption once in their lifetime on the disposal of one private residence. It cannot be used for commercial units or claimed by companies or foreigners, and the election is irrevocable, so it is best used on a large gain.
Both seller and buyer must submit CKHT forms within 60 days of the disposal date. LHDN typically imposes a 10% penalty on unpaid RPGT for late filing, and has power to impose heavier penalties, so file even when no tax is payable.
This tool provides general information based on current Malaysian legislation and publicly available figures. It is not legal advice and does not create a solicitor-client relationship. Figures may change; verify with the relevant authority or consult a lawyer for your specific circumstances.