Email: support@buyhouz.com
Phone: +604-293 3401

Understanding RPGT

 

Real Property Gains Tax (RPGT) is a type of Capital Gains Tax that is imposed by Inland Revenue (LHDN) on the disposal of property in Malaysia. It was lifted away in 2008 and 2009 due to economy downturn and reintroduced back in 2010. RPGT is mainly introduced to curb speculation of property market to prevent flipping or early disposal or property.

RPGT is basically calculated based on the gains between the selling price and original price of the property. Below is the table showing the rates since 1995 until 2015:-

  1995-2007 2008-2009 2010 2011 2012 2013 2014 2015
1st year 30% 0% 5% 10% 10% 15% 30% 30%
2nd year 30% 0% 5% 10% 10% 15% 30% 30%
3rd year 20% 0% 5% 5% 5% 10% 30% 30%
4th year 15% 0% 5% 5% 5% 10% 20% 20%
5th year 5% 0% 5% 5% 5% 10% 15% 15%
6th year & above 0% 0% 0% 0% 0% 0% 0% 0%

Since Budget 2014, companies need to pay a rate of 5% on 6th year and above. Non-citizen will be subjected to rate of 30% RPGT up to 5 years from the purchase date and there will be a flat rate of 5% on 6th year and above. RPGT has its own pros and cons. It has less impact on home owners compared to property speculators.

Here is an example of RPGT calculation of a property disposal on the 4th year in 2015:-

  RM
Selling Price 600,000
Less : Original price (400,000)
Chargeble gain 200,000
Less : Exemption of RM10,000 or 10% (Whichever higher) (20,000)
Taxable amount 180,000
RPGT tax at 20% (4th year 2015) 36,000

Back

Would you like to share the page with your friends?