Gains tax act 1976 the Real Property Gain Tax (RPGT) is a tax chargeable on the profit gained from the disposal of a property’s in Malaysia which is payable by  a seller.

Malaysia Real Property Gain Tax

For example, A man bought a piece of property in year 2000 at a value of RM500,000. Subsequently, A  man sold the property to A girl at the value of RM700,000 then the RPGT is calculated for RM200,000 profit gaining from the disposal of the property.

Deductible of gain tax after

• Renovation costs
• Stamp duty
• Valuation fees
• Legal fees, Agent fees

Malaysian & PR (Individual)

• Disposal within 3 years from purchased     30%
• Disposal 3 to 4 years from purchased          20%
• Disposal 4 to 5 years from purchased          15%
• Disposal after 5 years from purchased         Nil

Malaysian & PR (Company)

• Disposal within 3 years from purchased     30%
• Disposal 3 to 4 years from purchased          20%
• Disposal 4 to 5 years from purchased          15%
• Disposal after 5 years from purchased          5%

Tax Rate of RPGT for foreigners (individual)

• Disposal within 5 years from purchased      30%
• Disposal after 5 years from purchased            5%

Exemptions

• An individual will be given an exemption equal to Rm 10,000 or 10% of the chargeable gain, whichever is greater.
• Malaysian citizen and permanent resident will be entitle once in a lifetime exemption on any chargeable gain arising from the disposal of his private residence
• Transfer and transmission from deceased to beneficiaries
• Transfer between Spouses, parent and child, grandparent and grandchild
• Transfer to trustees.