Capital Gain Tax on Disposal of Unlisted Shares

Current Treatment

Tax on gains from the disposal of real property and shares in real property companies is imposed under the Real Property Gains Tax Act 1976 at a rate of 10% to 30% depending on the holding period. There is no tax imposed on gains from the disposal of shares except shares in real property companies.

Budget 2024
  • CGT Rate be imposed as follows.
Shares Acquisition Date CGT Rate
Before 1 March 2024

The taxpayers may choose:

  • 10% on the net gain of the disposal of shares, or
  • 2% on the gross sales value

From 1 March 2024

10% on the net gain of the disposals of shares
  • CGT exemption be given on the disposal of shares related to the following activities.
    1. Initial Public Offering (IPO) approved by Bursa Malaysia, and
    2. Restructuring of shares within the same group
    3. Venture Capital companies

Effective Date: From 1 Jan 2024

*Exemption from the implementation of CGT at the domestic level is given through subsidiary legislation from 1 Jan to 29 Feb 2024*

The treatment of shares in Real Property Company (RPC) refer here.



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