How does real property gains tax (RPGT) work in Malaysia?
RPGT is charged on gains from disposing of land, buildings and shares in real property companies. Rates fall with the holding period. For Malaysian citizens and PRs it is 30%, 30%, 20%, 15% in years 1 to 5, and nil from the 6th year. Companies pay 10% from year 6.
RPGT is administered under the Real Property Gains Tax Act 1976 and charged on gains from disposing of chargeable assets in Malaysia, such as houses, commercial buildings, farms and vacant land, and shares in real property companies.
Disposer categories (Schedule 5):
- Part I: individual citizens, permanent residents and partnerships. Since 1 January 2022: 30% for disposals within the first three years, 20% in the 4th year, 15% in the 5th year, and no RPGT from the 6th year..
- Part II: companies incorporated in Malaysia, per PwC: 30% up to three years, 20% in year 4, 15% in year 5, 10% from year 6.
- Part III: non-citizens and non-PRs and foreign companies, per PwC: 30% up to year 5 and 10% from year 6.
Filing: the return (Form RPK 1A for real estate, 1B for shares) is due within 60 days after disposal. The buyer also has notification duties, and holds back part of the price in many cases.
Note on shares: since 1 January 2024, gains from disposing of real property company shares by companies, LLPs, trust bodies and co-operatives fall under CGT, not RPGT.
Company-owned property is a common case. Plan a sale with the holding period in mind.
Legal basis
- Real Property Gains Tax Act 1976, Schedule 5
Sources
Applies to 2026 · Last reviewed 29 October 2026
General information for business owners, not legal, tax or professional advice. Rules change, so check the sources or ask a licensed professional before you act.
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