RPGT Malaysia: Deductible Costs, CKHT Forms, 60-Day Deadline

Which RPGT page do you need? This cluster is deliberately split by intent, and RPGT Malaysia 2026: Rates by Year is the rate table most people are looking for.

• Rates for the current year → RPGT Malaysia 2026
• How the tax works, end to end → Malaysia RPGT complete guide
• Working out a specific disposal → How to calculate RPGT or the RPGT calculator
• Exemptions → RPGT exemptions guide
• Selling as a foreigner → Foreigner RPGT
• Inherited property → RPGT on inherited property

RPGT is the tax Malaysia charges on profits from selling property. If you buy a condo for RM400,000 and sell it for RM550,000, the government wants a share of that RM150,000 gain. How large a share depends on two things: how long you held the property and whether you are a Malaysian citizen or a foreigner.

This guide covers the current RPGT rates, how the tax is calculated, what exemptions exist, the filing process, deadlines, and worked examples for both citizens and foreigners.

Is RPGT the Same as Capital Gains Tax?

For property, effectively yes. Malaysia has no general capital gains tax on individuals disposing of real property: Real Property Gains Tax is the capital gains tax on property, charged under the Real Property Gains Tax Act 1976 on the gain made on disposal of real property or shares in a real property company.

So if you have been searching for "capital gains tax Malaysia" in relation to a house, condominium or land, RPGT is the tax you are looking for, and the rates on this page are the rates that apply. The Malay term is cukai keuntungan harta tanah, often abbreviated CKHT, which is what you will see on LHDN forms.

What Is RPGT?

Real Property Gains Tax is governed by the Real Property Gains Tax Act 1976 (RPGTA 1976) and administered by LHDN (Lembaga Hasil Dalam Negeri / Inland Revenue Board of Malaysia). It applies to:

• Real property situated in Malaysia — land, buildings, apartments, condos, commercial lots
• Shares in real property companies (RPC) — companies where real property makes up 75% or more of total tangible assets

RPGT is triggered on the date of disposal, which is typically the date the Sale and Purchase Agreement (SPA) is signed, not the date of settlement or title transfer.

The tax is on the chargeable gain — the profit after deducting your acquisition cost and allowable expenses. If you sell at a loss, there is no RPGT payable, but you should still file the return.

Current RPGT Rates (2026)

The rates below apply to disposals from 2024 onwards, as set in the Finance Act 2024 amendments. These rates remain in effect for 2026.

Malaysian Citizens & Permanent Residents

Non-Citizens (Foreigners)

Companies

The holding period is counted from the date of acquisition (SPA date for the purchase) to the date of disposal (SPA date for the sale). If you signed your purchase SPA on 15 March 2021 and your sale SPA on 20 March 2026, that is 5 years and 5 days — you are in year 6 territory.

How to Calculate RPGT — Step by Step

The calculation follows a straightforward formula:

Chargeable Gain = Disposal Price - Acquisition Price - Allowable Expenses

Taxable Gain = Chargeable Gain - Exemption

RPGT Payable = Taxable Gain x Applicable Rate

What Counts as Acquisition Price

The acquisition price is the purchase price in your original SPA, plus:

• Legal fees for the purchase
• Stamp duty on the SPA and loan agreement
• Valuation fees (if required by the bank)
• Real estate agent fees on purchase (uncommon in Malaysia but applicable if paid)

What Counts as Allowable Expenses

You can deduct expenses that are directly related to the acquisition, holding, and disposal of the property:

• Legal fees on both purchase and sale transactions
• Stamp duty paid on the original purchase
• Agent commission on the sale (typically 2-3% of selling price)
• Renovation costs that permanently improve the property — with original receipts and invoices
• Valuation fees for the sale

Not deductible: Mortgage interest, maintenance fees, insurance premiums, furnishing costs (movable items), and repair costs that maintain rather than improve the property.

The Automatic Exemption

For individuals (citizens, PRs, and foreigners alike), LHDN automatically exempts the greater of RM10,000 or 10% of the chargeable gain. This is applied to every disposal and does not need to be claimed separately.

For a chargeable gain of RM150,000, your exemption is RM15,000 (10% of RM150,000, which is greater than RM10,000). Your taxable gain becomes RM135,000.

Companies do not get this automatic exemption.

Worked Example 1: Malaysian Citizen — Selling in the 4th Year

Scenario: Ahmad, a Malaysian citizen, bought a condo in Petaling Jaya in March 2022 for RM450,000. He sells it in January 2026 for RM580,000.

Holding period: 3 years and 10 months — the disposal falls in the 4th year, the 20% bracket for citizens. (Had he waited past March 2026, four complete years would have elapsed and the disposal would fall in the 5th year at 15%.)

Calculation:

Chargeable Gain = RM580,000 - RM450,000 - RM58,600 = RM71,400

Exemption = 10% of RM71,400 = RM7,140. Since RM10,000 > RM7,140, the exemption is RM10,000.

Taxable Gain = RM71,400 - RM10,000 = RM61,400

RPGT Payable = RM61,400 x 20% = RM12,280

If Ahmad had waited until the 6th year (any disposal from March 2027), his RPGT would be RM0. That RM12,280 saving is worth considering if you are close to the 5-complete-year mark.

Worked Example 2: Foreigner — Selling After 7 Years

Scenario: Sarah, a Singaporean citizen, bought a condo in Mont Kiara for RM850,000 in 2019. She sells it in 2026 for RM1,050,000.

Holding period: 7 years — falls in the 10% bracket for foreigners (year 6+).

Calculation:

Chargeable Gain = RM1,050,000 - RM850,000 - RM95,500 = RM104,500

Exemption = 10% of RM104,500 = RM10,450. Since RM10,450 > RM10,000, the exemption is RM10,450.

Taxable Gain = RM104,500 - RM10,450 = RM94,050

RPGT Payable = RM94,050 x 10% = RM9,405

Note: unlike Malaysian citizens who pay 0% from the 6th year onward, Sarah still pays 10%. This is a permanent cost of being a foreign property owner in Malaysia. For a deeper look at foreigner-specific RPGT rules, see our foreigner RPGT guide.

Worked Example 3: Citizen — Selling Within Year 1

Scenario: Razak bought a terrace house in Shah Alam for RM520,000 and flips it 8 months later for RM610,000 after renovation.

Holding period: Less than 1 year — 30% rate applies.

Exemption = RM10,000 (greater than 10% of RM28,000 = RM2,800)

Taxable Gain = RM28,000 - RM10,000 = RM18,000

RPGT Payable = RM18,000 x 30% = RM5,400

This is why property flipping within the first 3 years carries a heavy tax cost. The 30% rate eats significantly into short-term gains.

RPGT Exemptions

Beyond the automatic RM10,000/10% exemption, Malaysia offers several significant RPGT exemptions:

1. Once-in-Lifetime Private Residence Exemption

Who qualifies: Malaysian citizens and permanent residents only.

This exempts the entire chargeable gain from RPGT on the disposal of one private residence. No cap on the gain amount. If your chargeable gain is RM500,000 or RM5,000,000, the full amount is exempt.

Conditions:

• Must be your private residence (prove with utility bills, IC address)
• Must be owned in your individual name (not through a company)
• Can only be claimed once in your lifetime

Strategic advice: Do not waste this on a small gain. If you plan to sell multiple properties over your lifetime, save this exemption for the one with the largest chargeable gain.

For the full list of exemptions, read our RPGT exemption guide.

2. Transfer Between Spouses

Transfers between legally married husband and wife are deemed to have a disposal price equal to the acquisition price — meaning zero chargeable gain and zero RPGT. The transferor must be a Malaysian citizen (effective January 2018).

3. Transfer to Family Members (Gift)

Transfers by way of gift between parents and children, grandparents and grandchildren are also deemed at acquisition price (no gain, no RPGT). Both parties must be Malaysian citizens.

4. Transfer Due to Death

Property transferred from a deceased person's estate to beneficiaries is not subject to RPGT. However, when the beneficiary subsequently sells the property, the acquisition date and price used for RPGT calculation is the deceased's original acquisition date and price — not the date of inheritance.

5. Compulsory Acquisition by Government

If the government acquires your property under the Land Acquisition Act 1960, any gain is fully exempt from RPGT.

How to File RPGT

Forms Required

Filing Deadline

Both parties must file within 60 days from the date of disposal (SPA date). Late filing incurs penalties.

The Retention Mechanism (3%, 5% or 7%)

The buyer is legally required to retain the lowest of the whole money consideration, a percentage of the total value of the consideration (not the gain, the full price, which in a typical sale is the purchase price), or, for disposals from Year of Assessment 2026, the deemed-assessed tax amount described below, and remit it to LHDN within 60 days. In a normal all-cash-price sale with no deemed-assessment notification, the percentage is the lowest figure, so that is what gets retained. This acts as a deposit against the seller's RPGT liability. The rate depends on who the seller is, under section 21B RPGTA:

For disposals from Year of Assessment 2026, the buyer has a third option under section 21B as amended by the Finance Act 2025 (Act 874, s.23): retain the amount of tax deemed assessed under subsection 14(1) instead of the percentage above, provided the seller's notification of the deemed assessment reaches the buyer before the retention sum is paid over. Whichever basis applies, the buyer must remit within 60 days; failure to pay attracts a 10% increase on the unpaid amount.

For Sarah's example above, the buyer would retain 3% of RM1,050,000 = RM31,500 and pay it to LHDN. After LHDN processes the return and determines RPGT of RM9,405, the difference of RM22,095 is refunded to Sarah.

If the computed RPGT exceeds 3% of the purchase price, the seller must pay the balance directly to LHDN.

Where to File

RPGT returns can be filed:

• Online via MyTax portal (e-CKHT)
• In person at any LHDN branch
• By post to the RPGT Processing Centre

The online method is faster and recommended. Processing typically takes 2-4 months for straightforward cases.

Penalties for Non-Compliance

These penalties are real and enforced. LHDN cross-references property transactions through the land office and stamp duty records, so do not assume unreported disposals go unnoticed.

RPGT and Holding Period Strategy

The RPGT structure creates a clear incentive to hold property for at least 6 years if you are a Malaysian citizen or PR. The jump from 15% (year 5) to 0% (year 6) is the most significant tax cliff in Malaysian property taxation.

For foreigners, the holding period is less relevant from a pure RPGT perspective — you drop from 30% to 10% after year 5, but never reach 0%. The decision to sell is more about market conditions and opportunity cost than tax optimization.

Key strategic points:

1. Near the 6-year mark? If you are a citizen in year 5 and considering selling, delay the SPA signing until you cross into year 6. The difference between 15% and 0% on a RM200,000 gain is RM30,000.

2. Flipping within 3 years? Budget 30% RPGT into your feasibility calculation. Many property flips that look profitable on paper become marginal or loss-making after the 30% RPGT hit.

3. Inherited property? The holding period starts from the deceased's acquisition date, not your inheritance date. If your parent bought a property in 2005 and you inherited it in 2024, your holding period is already 19+ years — 0% RPGT for citizens. See our inherited property RPGT guide for details.

4. Renovation receipts matter. Every ringgit of documented renovation cost reduces your chargeable gain. Keep all invoices and receipts for renovation work. Undocumented renovations cannot be claimed as deductions.

RPGT vs Other Property Taxes in Malaysia

RPGT is not the only tax on property. Understanding where it fits in the broader property tax landscape helps with planning:

• Stamp duty — paid on purchase (1-4% on property value, 0.5% on loan agreement)
• Quit rent and assessment — annual holding taxes paid to land office and local council
• Rental income tax — tax on rental income at your marginal income tax rate
• RPGT — tax on capital gains when you sell

Each tax applies at different stages of the property ownership cycle. RPGT is the exit tax — it only matters when you dispose of the property.

Common RPGT Mistakes

1. Forgetting to file when selling at a loss. Even if you sell below your acquisition price, you must still file the CKHT forms within 60 days. No gain does not mean no filing obligation.

2. Using market value instead of SPA price. The acquisition price for RPGT purposes is the price in your SPA, not the bank's valuation or current market value. The exception is transactions between related parties, where LHDN may substitute market value.

3. Not keeping renovation receipts. Verbal claims of "I spent RM50,000 on renovation" without invoices will be rejected. LHDN requires documentary evidence for every deduction.

4. Miscounting the holding period. Year 1 means within 12 months from acquisition date. If you bought on 1 March 2023, year 1 ends on 28 February 2024. Selling on 1 March 2024 puts you in year 2, not year 1.

5. Ignoring the buyer's 3% retention. If you are the buyer, you have a legal obligation to retain and remit 3% of the purchase price. Your lawyer should handle this, but verify it is done. Failure carries criminal penalties.

Bottom Line

RPGT is straightforward once you understand the rate table, the exemptions, and the filing process. The key decisions are:

• Citizens: Hold for 6+ years to pay 0%. Use the once-in-lifetime exemption strategically on your largest gain.
• Foreigners: Accept the 10% floor rate after year 5. Factor it into your investment return calculations from the start.
• Everyone: Keep receipts, file on time, and do not forget the 3% retention mechanism.

For help calculating your exact RPGT liability, use our RPGT calculator with current rates and automatic exemption calculations.