What you pay when you sell, how long you have held it, and the exemptions that can bring it to nothing.
The rate depends on how long you held the property and which category of disposer you fall into. Schedule 5 of the Real Property Gains Tax Act 1976 divides disposers into three Parts.
| Holding period | Part I — citizens, PRs & partnerships | Part II — Malaysian-incorporated companies | Part III — non-citizens & foreign companies |
|---|---|---|---|
| Disposal within 2 years | 30% | 30% | 30% |
| Disposal in the 3rd year | 30% | 30% | 30% |
| Disposal in the 4th year | 20% | 20% | 30% |
| Disposal in the 5th year | 15% | 15% | 30% |
| Disposal in the 6th year and thereafter | 0% | 10% | 10% |
RPGT is charged on the chargeable gain, not on the selling price.
An individual is then exempt on RM10,000 or 10% of the chargeable gain, whichever is greater, under paragraph 2 of Schedule 4.
Where state consent is required for the disposal, the date of disposal is the date those conditions are met — not the date of the sale and purchase agreement.
The Finance Act (No. 2) 2023 brought RPGT under self-assessment for disposals from 1 January 2025. You work out the tax yourself and file to a deadline, rather than waiting to be assessed.
The disposer submits the RPGT return within 60 days of the date of disposal, and works out the chargeable gain and the tax due on the return itself.
The acquirer pays the amount retained under section 21B within 60 days of the date of acquisition.
The disposer pays the tax, or the balance of it, within 90 days of the date of disposal.
No notice of assessment is issued. The return you file is treated as the assessment, so the supporting documents have to be kept for seven years.
Three situations in which a seller pays nothing on the gain.
A gift between husband and wife, parent and child, or grandparent and grandchild is treated as no gain and no loss, so the donor pays nothing. Since 1 January 2017 the donor must be a Malaysian citizen.
A transfer between husband and wife, or between former spouses under a court order on divorce or annulment, is also treated as no gain and no loss. Since 1 January 2018 this is restricted to Malaysian citizens.
An individual who is a Malaysian citizen or permanent resident may claim a full exemption on the gain from one private residence, once. The election is made on Form CKHT 3 through e-CKHT and cannot be reversed.
Rates and conditions on this page follow the Inland Revenue Board of Malaysia and were last checked in September 2026. They are a guide, not tax advice — confirm your own position with LHDN or a licensed tax agent before you commit to a sale.
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