Planning to sell a property in Malaysia? You’ll likely owe Real Property Gains Tax (RPGT) — a tax on the profit (chargeable gain) you make when you dispose of real property. The rate depends on how long you’ve held the property and whether you’re a Malaysian/PR, foreigner, or company. Use the calculator below to estimate your RPGT instantly.
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RPGT Result
What is RPGT?
Real Property Gains Tax (RPGT) is a capital gains tax imposed under the Real Property Gains Tax Act 1976 on the profit from selling Malaysian real property, per the LHDN’s official CKHT rates. It applies to both residential and commercial/industrial property, and is payable to LHDN within 60 days of the disposal.
Note: RPGT is a one-time tax triggered only at the point of sale — it is not an annual tax, and the rate is fixed by your holding period (acquisition date to disposal date), not by any loan tenure.
How is RPGT calculated?
The formula is straightforward:
Chargeable Gain = Disposal Price − Acquisition Price − Allowable Expenses
- Acquisition price includes incidental purchase costs (stamp duty, legal fees).
- Allowable expenses include renovation/improvement costs and incidental disposal costs (agent commission, legal fees).
- RPGT Payable = (Chargeable Gain − Exemption) × RPGT Rate
RPGT Rates (2025)
| Holding Period | Malaysian / PR | Foreigner | Company |
|---|---|---|---|
| Within 3 years | 30% | 30% | 30% |
| 4th year | 20% | 30% | 20% |
| 5th year | 15% | 30% | 15% |
| 6th year onwards | 0% | 10% | 10% |
The big takeaway: Malaysians pay zero RPGT after 5 years, but foreigners and companies still pay 10% even after 6 years. Foreigners also stay at 30% for the full first 5 years.
RPGT Exemptions
- Individuals (Malaysian/PR and foreigner) get an exemption of RM10,000 or 10% of the chargeable gain, whichever is higher.
- Companies do not receive this individual exemption.
- Once-in-a-lifetime private residence exemption: Malaysian citizens and PRs can claim a full exemption on the gain from selling one private residence (residential only) — once in a lifetime, via a CKHT 3 election. Not applicable to foreigners, companies, or industrial/commercial property.
- Other exemptions apply for family transfers, gifts, and no-gain-no-loss transactions — consult a tax agent for eligibility.
Example: Selling after 3 years
You bought an industrial unit for RM1,000,000 and sell it for RM1,300,000 after 3 years, with RM50,000 in renovation costs.
- Chargeable gain = RM1,300,000 − RM1,000,000 − RM50,000 = RM250,000
- Exemption (10%) = RM25,000
- Taxable gain = RM225,000
- RPGT at 30% (within 3 years, Malaysian) = RM67,500
FAQ
What is RPGT and when do I pay it?
RPGT is a tax on the profit from selling Malaysian property. It is paid once, within 60 days of the disposal, to LHDN.
How is chargeable gain calculated?
Chargeable gain = selling price − purchase price − allowable expenses (renovation, purchase stamp duty and legal fees, agent commission, legal fees on sale).
What is the RPGT exemption for individuals?
Individuals can claim RM10,000 or 10% of the chargeable gain, whichever is higher. Companies do not get this exemption.
What are the RPGT rates for foreigners vs Malaysians?
Malaysians pay 30% (0–3 years), 20% (4th year), 15% (5th year), then 0%. Foreigners pay 30% for the first 5 years and 10% from the 6th year onwards.
Do companies pay RPGT?
Yes — companies pay 30% (0–3 years), 20% (4th), 15% (5th) and 10% from the 6th year, with no individual RM10k/10% exemption.
Is there a once-in-a-lifetime exemption for private residences?
Yes. A Malaysian citizen or PR can claim a full RPGT exemption on the gain from disposing of one private residence (residential property only) once in their lifetime, via a CKHT 3 election. It does not apply to foreigners, companies, or industrial/commercial property.
How can I reduce my RPGT?
Hold the property beyond 5 years (Malaysians pay 0%), keep records of all renovation and incidental costs to increase allowable expenses, and apply all eligible exemptions.
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