Real Property Gain Tax (RPGT)

Real Property Gain Tax (RPGT)

Real Property Gain Tax (RPGT) is a tax imposed on gains from disposal of all types of properties such as residential and commercial buildings, land and shares of real property companies. RPGT is imposed on the net gains from disposal of property after deducting the following costs:-:-:-
1. Acquisition Price
2. Stamp Duty
3. Legal Fees
4. Renovation Costs
5. Commission for sales and administrative payments

 

For Malaysian citizens and permanent residents, RPGT is exempted for the disposal of one residential property once in their lifetime.

Further, RPGT is also not imposed on gains from disposal of property between:-:-:-
1. Husband and wife
2. Parents and children
3. Grandparents and grandchildren

 

:-:-:-RPGT 2014 Rates:-:-:-

RPGT rates are depending on the entity (resident, individual or company) and the most importantly holding period. There are three (3) separate tier group for RPGT 2014 rates. The groups are Malaysian Citizen and Permanent Resident (PR) individuals, Companies and Non-Citizen or Non-Permanent Resident.

  • For the Malaysian citizen and permanent resident individuals, any property disposed within the first five (5) years of purchase is subjected to RPGT. Beyond that, there is no RPGT imposed.
  • For the Companies and Non-Citizen or Non-Permanent Resident group RPGT imposed when they disposed the property even the property held more than five (5) years.

 

Holding Period is determined base on date of signing of Sales & Purchase Agreement (SPA) and date of disposal. Take note on the anniversary date to determine the actual RPGT rates.

RPGT 2014 tier rates for all three (3) groups are tabulated in the table below.

Real Property Gain Tax (RPGT)