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Real Property Gain Tax
2012-11-02 09:50:13

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 from 1 January 2013, gains from the disposal of residential and commercial properties are taxed between 0% and 15% depending on the holding period of real properties as follows:Thw RPGT rates will not burden genuine property onwers as they are given exemption and the payment of RPGT is based on net gains as follows:

Holding Period              RPGT Rates      
  Companies Individual(Citizen & PR) Individual (Non-Citizen)
Up to 2 years 15% 15% 15%
Exceeding 2 until 5 years 10% 10% 10%
Exceeding 5 years 0% 0% 0%

 i. 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;

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

iii. 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; and
iv. 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 www.hasil.gov.my.


From: Malaysian Investment Development Authority