Malaysia RPGT: Rates by Holding Period, Chargeable Gain & Exemptions
Real Property Gains Tax (RPGT, or Cukai Keuntungan Harta Tanah) is the tax you pay on the profit when you sell Malaysian property or shares in a real property company. It is charged only on the gain, not the sale price, and the rate falls the longer you have held the asset — a deliberate brake on speculative flipping. Here is how the rate is chosen, how the taxable gain is calculated, what is exempt, and a full worked example using the exact rates this site's calculator applies.
Rates by holding period and disposer category
The rate depends on two things: how many years you held the property (counted from the acquisition date to the disposal date) and who you are. The longer you hold, the lower the rate:
| Holding period | Citizen / PR | Company | Foreigner / non-citizen |
|---|---|---|---|
| Up to 3 years | 30% | 30% | 30% |
| In the 4th year | 20% | 20% | 30% |
| In the 5th year | 15% | 15% | 30% |
| 6th year onwards | 0% | 10% | 10% |
How the chargeable gain is worked out
RPGT is charged on the chargeable gain, not on the selling price. The gain is the disposal price minus the acquisition price, after deducting the costs the law allows you to add on. Getting these deductions right is what separates a rough guess from an accurate figure:
- Acquisition cost — the original purchase price plus the incidental costs of buying: legal fees, stamp duty on the transfer, and any agent's commission you paid.
- Enhancement cost — money spent improving the property (renovations, extensions) that is still reflected in its value at disposal. Ordinary repairs and maintenance do not count.
- Disposal (permitted) expenses — costs of selling, such as the agent's commission, legal fees and advertising, are deducted from the selling price.
Exemptions that reduce the bill
Several statutory exemptions can cut or wipe out the tax, and most sellers overlook them:
- Schedule 4 relief — for individuals, the greater of RM10,000 or 10% of the chargeable gain is exempt from tax on every disposal.
- Once-in-a-lifetime private residence exemption — a Malaysian citizen or PR can elect a full exemption on the gain from disposing of one private residence, usable only once in a lifetime.
- Transfers by way of love and affection — transfers between spouses, or from parent to child (and, since recent amendments, grandparent to grandchild), are treated as no-gain-no-loss, so no RPGT arises on the transfer itself.
Worked example
A Malaysian citizen buys a house for RM400,000 and sells it four years later for RM600,000. Acquisition costs (legal fees, stamp duty, agent) were RM18,000 and disposal costs (agent commission, legal fees) were RM15,000. The chargeable gain is RM600,000 − RM15,000 − RM400,000 − RM18,000 = RM167,000.
Schedule 4 relief exempts the greater of RM10,000 or 10% of RM167,000 (RM16,700), so RM16,700 is deducted, leaving RM150,300. Disposal in the 4th year by a citizen is taxed at 20%, giving RPGT of about RM30,060. Reproduce the rate selection instantly with the calculator below, then apply your own gain.
Filing and important caveats
Both the seller and the buyer must file RPGT returns (Form CKHT) with LHDN within 60 days of the disposal date, and the buyer's solicitor typically retains a portion of the purchase price (commonly up to 3%) and remits it to LHDN as a retention against the seller's RPGT.
These are the standard rates and reliefs and are a planning estimate only. Rates are set by the RPGT Act and changed at several recent Budgets — notably the 6th-year-onwards rate for citizens was reduced to 0%. Confirm the current rates, exemptions and filing deadlines with LHDN and your conveyancing solicitor before relying on any figure.
Last reviewed: 2026-07-07