Real Property Gains Tax (RPGT) is a tax imposed on the profit gained from the disposal of real property or shares in real property companies in Malaysia. The key points are:
- Applicability: RPGT is applicable to both individuals and companies that sell properties or shares in real property companies, with the tax rate depending on the holding period of the property
- Tax Rates:
- Individuals (Citizens/PR): Higher rates apply if the property is sold within the first few years (e.g., 30% in the first 3 years), decreasing over time.
- Non-Citizens/Companies: Different rates apply, often higher, especially for short-term disposals.
- Exemptions:
- One-time exemption for disposal of a private residence.
- Exemptions for property transfers between family members (e.g., spouses, parents, and children).
- Other exemptions may apply as per specific government rulings.
- Filing and Payment: Sellers must file RPGT within 60 days of the property disposal, and payment must be made according to the assessment issued by the Inland Revenue Board (LHDN).
RPGT aims to curb speculative activities in the property market and ensure that gains from property sales are fairly taxed.
More info : https://www.hasil.gov.my/en/rpgt/rpgt-guidelines/
