RPGT in Malaysia: the tax you pay when you sell property

What RPGT is

RPGT (Real Property Gains Tax, or cukai keuntungan harta tanah) is the tax you pay when you sell or otherwise dispose of a property in Malaysia at a profit.

The important point is that RPGT is charged on the gain, not on the sale price. If you buy a property and later sell it for more than it cost you, the profit is what gets taxed. Sell at no gain, and there is no RPGT to pay.

This is the main tax that affects sellers in the Malaysian property market, so it is worth understanding before you decide when and whether to sell.

RPGT rates by holding period

The rate depends on how long you held the property and on who you are. The year count starts from the acquisition date, which is usually the date of the sale and purchase agreement (SPA).

The pattern for Malaysian citizens and permanent residents is that the tax is highest in the early years and falls to zero once you have held the property for more than five years. Companies incorporated in Malaysia follow the same early schedule but never reach zero. Foreigners pay a flat 30% for the first five years.

What counts as the gain

The chargeable gain is the disposal price minus the acquisition price. Allowable costs then reduce that gain, which lowers the tax. These costs include stamp duty paid, legal fees, agent or brokerage fees, and renovation or enhancement costs. Keep your receipts, because you need proof to claim them.

Here is a simple illustration for a Malaysian citizen. The figures are an example only.

• Bought at RM400,000
• Sold at RM550,000
• Gross gain: RM150,000

Now subtract allowable costs:

• Legal fees, stamp duty, and agent commission: RM20,000
• Documented renovations: RM10,000
• Net chargeable gain: RM120,000

Next apply the automatic waiver, which is RM10,000 or 10% of the gain, whichever is higher. Here 10% of RM120,000 is RM12,000, which beats RM10,000, so RM12,000 is exempt.

• Taxable gain after waiver: RM108,000

Finally apply the rate for the holding year. If the property was sold in year 4, the rate is 20%.

• RPGT payable: RM108,000 × 20% = RM21,600

Change the holding year and the outcome changes a lot. The same gain sold in year 6 or later would be taxed at 0%.

Exemptions that matter

A few exemptions can make a real difference:

• Automatic waiver. For citizens, RM10,000 or 10% of the chargeable gain, whichever is higher, is exempt on every disposal.
• Once-in-a-lifetime exemption. A citizen can claim a full exemption on the disposal of one private residential property. You can only use this once, so it is worth saving for a disposal where the gain is large.
• Transfers by love and affection. Transfers between spouses, parent and child, or grandparent and grandchild are treated as no-gain-no-loss disposals, so no RPGT arises at the point of transfer.

Self-assessment since 2025

Since 1 January 2025, RPGT operates under self-assessment. This means the seller is responsible for computing the gain and filing their own CKHT forms, rather than waiting for an assessment to be issued.

In practice this puts more weight on keeping good records. Hold on to your SPA, receipts for legal fees, stamp duty, agent commission, and renovation invoices, so your computation stands up if it is ever reviewed.

Timing your sale

For citizens, the gap between selling in year 5 (15%) and year 6 (0%) is significant. On a large gain, waiting a little longer can save a meaningful amount of tax, though you also have to weigh holding costs and where the market is heading.

Checking recent transacted prices helps you judge whether waiting is worth it. Browse completed deals for similar properties at /subsales to see what buyers and sellers have actually agreed to, and read how to check property market value for a practical way to estimate where your property sits today.

A note before you file

List.my provides market data to help you understand pricing and time a sale. It does not provide tax advice. RPGT rules involve conditions and exceptions that depend on your circumstances, and the rates can change with each Budget.

Confirm any RPGT computation with a tax professional or lawyer before you file. Treat this guide as a plain-English overview, not as tax or legal advice.