Real Property Gains Tax: fixed market price.

Real Property Gains Tax will be computed based on the market value as at 1st January 2013 instead of 1st January 2000 for properties owned above 5 years and above.

Real property gain tax (RPGT) is also known as a capital gain tax that is imposed by the government on every disposal of property within five years. Please use our RPGT calculator to find out what is the amount of your Real Property Gain Tax needs to pay to the inland revenue department.

Just key in your purchased price, selling price and the holding period (number of years you hold the property, e.g. the year you sold minus the year you bought the property).

You can minus out the ALLOWABLE EXPENSES such as legal fees and stamp duty paid, agency's fees, renovation and repair, and others to reduce your profits, then you refer to payable column whether you are Malaysian Citizen/PR, Company or Non-Citizen/Non-PR.

How much RPGT is payable?

A simple formula of the RPGT payable is as follows

Tax payable = RPGT rate x net chargeable gain

The RPGT rate imposed depends on the entity of the disposer (whether a permanent resident, individual citizen or company) and the period of ownership of the property.

Net chargeable gain is the disposal price less the purchase price (that is the original price at which the seller bought the property) less permitted expenses such as certain renovation costs and incidental costs of acquisition and disposal including fees, commission or remuneration paid for the professional services of any surveyor, valuer, accountant, agent or solicitor.

Are there any reliefs or exemptions?

A Malaysian citizen who disposes of a property after five years of ownership for a consideration sum of RM200,000 or below is exempted from RPGT.

For disposal of a property acquired before Jan 1, 2000, the market value as at Jan 1, 2000 will be taken as the acquisition price for purposes of calculating the RPGT, if any.

New RPGT updates for budget 2020

Real Property Gains Tax: fixed market price.

Real Property Gains Tax will be computed based on the market value as at 1st January 2013 (for personal/individual owner only, not for a company) instead of 1st January 2000 for properties owned above 5 years and above. However, a Malaysian citizen or permanent resident is given a one-time exemption on gains from the disposal of one residential property in his lifetime. Further, the disposal of property between husband and wife, parents and children, grandparents and grandchildren by way of gift will not attract RPGT if the disposer (including a personal representative) is a Malaysian citizen, as the disposer shall be deemed to have received no gain and suffered no loss on the disposal. Last but not least, relief equivalent to RM10,000 or 10% of the net chargeable gain (whichever is greater) is also given to an individual.