Real Property Gains Tax (RPGT) is a capital gains tax levied on profit from property disposal in Malaysia. Since 2022, the RPGT rate for properties held more than 5 years is 0% for Malaysian citizens โ but there are important nuances for companies and foreigners. Here is everything you need to know.
RPGT Rates Malaysia 2026
| Holding Period | Malaysian Citizen/PR | Non-Citizen/Foreigner | Company |
|---|---|---|---|
| Within 3 years | 30% | 30% | 30% |
| In the 4th year | 20% | 30% | 20% |
| In the 5th year | 15% | 30% | 15% |
| After 5 years | 0% | 10% | 10% |
What Is Taxable Gain?
RPGT is calculated on the NET GAIN, not the sale price: Taxable Gain = Disposal Price โ (Acquisition Price + Allowable Expenses). Allowable expenses include legal fees at purchase, stamp duty paid, renovation costs (with receipts), agent fees at disposal, and loan interest incurred on the property (for rental properties).
RPGT Exemptions Available
Once-in-a-lifetime exemption: Malaysian citizens can claim an exemption for one residential property sale in their lifetime. Gifts to family: Disposal by way of gift to spouse, parent, or child is exempt. Compulsory acquisition: Government acquisition is exempt. RM10,000 or 10% exemption: Whichever is higher, on each disposal.
Disposal Date Rules
The disposal date is the date of execution of the sale and purchase agreement โ not the date of transfer. The acquisition date is when you first completed purchase. Count months from acquisition to disposal date to determine the holding period band.
Calculate your estimated RPGT with our ๐งพ Tax Calculator.
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