RPGT on Inherited Property Malaysia

Acquisition Date for Inherited Property

Under the RPGT Act, property acquired through inheritance is deemed acquired on the date of death of the deceased — not when the grant of probate is issued or when the property is transferred to your name. This is a critical point: the holding period clock starts from the death date.

Acquisition Price for Inherited Property

The deemed acquisition price for inherited property is the market value at date of death (not the original purchase price of the deceased). This generally means a stepped-up cost basis, which can significantly reduce the taxable gain when you eventually sell.

Holding Period for Inherited Property

Since the deemed acquisition date is the death date, if more than 5 years have passed since the deceased passed, a Malaysian citizen beneficiary pays 0% RPGT on disposal — regardless of how recently the property was transferred into their name.

Gift vs Inheritance RPGT Treatment

Gift (hibah) from a living parent: acquisition date is the date of the gift, acquisition price is the parent's original acquisition price (no step-up). Inheritance through estate: stepped-up basis to death-date market value. For tax efficiency, inheriting is generally more favourable than receiving a gift — the stepped-up basis reduces future RPGT.

Estate Duty in Malaysia

Malaysia abolished estate duty in 1991 — there is no inheritance tax on estates in Malaysia. RPGT only arises when the inherited property is subsequently sold. Holding the property and letting the 5-year clock run (from death date) is often the most tax-efficient strategy.