Calculating your Real Property Gains Tax (RPGT) in Malaysia requires knowing your disposal price, acquisition price, all allowable expenses, and the applicable rate based on your holding period. This step-by-step guide walks through two complete worked examples.
The RPGT Calculation Formula
Step 2: Net Gain = Gross Gain - Allowable Expenses
Step 3: Taxable Gain = Net Gain - Exemptions (e.g., RM10k or 10%)
Step 4: RPGT = Taxable Gain x Applicable Rate
Worked Example 1: Early Sale (3 Years, Malaysian Citizen)
Bought: RM450,000 in 2022. Sold: RM600,000 in 2025 (year 3). Holding: 3 years (30% rate).
Gross Gain = RM600,000 - RM450,000 = RM150,000. Allowable expenses: Legal fees RM6,000 + Stamp duty RM8,500 + Agent fees RM12,000 + Renovation RM25,000 = RM51,500. Net Gain = RM150,000 - RM51,500 = RM98,500. Automatic exemption = 10% x RM98,500 = RM9,850. Taxable Gain = RM98,500 - RM9,850 = RM88,650. RPGT @ 30% = RM26,595.
Worked Example 2: Same Property Using Lifetime Exemption
Same transaction as above, but seller uses lifetime residential exemption. Taxable Gain after all deductions = RM88,650. Apply lifetime exemption = RPGT fully exempted. RPGT = RM0. Lifetime exemption claim used up.
Worked Example 3: Property Held 6 Years (Malaysian Citizen)
Bought: RM400,000 in 2018. Sold: RM650,000 in 2026 (year 8). Rate: 0% for Malaysian citizen.
Despite a RM250,000 gain, RPGT = RM0. No calculation needed. Holding period >5 years is the simplest path to zero RPGT.
RPGT Filing and Payment
RPGT must be reported by filing Form CKHT 1A (disposal) within 60 days of disposal date. The buyer withholds 3% of purchase price (for citizens) or 7% (for foreigners) as RPGT retention sum. File form and claim refund or pay balance within the 60-day window.
Our editorial team specialises in Malaysian personal finance โ covering loans, taxation, insurance, EPF, and Islamic finance. Every article is fact-checked against Bank Negara Malaysia (BNM), LHDN, and major Malaysian bank publications. We reference our calculators (which use industry-standard formulas) to ensure consistency between our written content and tools. Learn more about our methodology โ