UPDATED FEB 2023
The Inland Revenue Board (IRB) levies Real Property Gains Tax (RPGT) on chargeable gains derived from the sale of real property. The Real Property Gains Tax Act of 1976 contains provisions for this tax (Act 169). The tax is levied on the difference between the disposal price and the acquisition price.
RPGT rates vary depending on disposer category and chargeable asset holding period. According to Schedule 5 of the RPGT Act, the disposer is divided into three categories. (LHDNM, 2022)
- Part 1 Schedule 5 RPGT Act
Except part II and part III. For example, individual Malaysian citizen and partners.
- Part II Schedule 5 RPGT Act
Disposer is a company incorporated in Malaysia or a trustee of a trust or body of persons registered under any written law in Malaysia.
- Part III Schedule 5 RPGT Act
Disposer who is not citizen and not permanent resident, or an executor of the estate of a deceased person who is not a citizen and not a permanent resident, or a company not incorporated in Malaysia.
From the period of 1.1.2014 until 31.12.2018, disposal in the sixth year after the date of acquisition of the chargeable asset is nil.
From the period of 1.1.2019 until 31.12.2021, disposal in the sixth year after the date of acquisition of the chargeable asset is 5%.
For the period of 1.1.2022 and thereafter, disposal in the sixth year after the date of acquisition of the chargeable asset is changed back to nil. While RPGT rate for other categories remained unchanged
