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:
|
|
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.
- Initial Public Offering (IPO) approved by Bursa Malaysia, and
- Restructuring of shares within the same group
- 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.
