The short answer
Real Property Gains Tax (RPGT) is charged on the gain when you sell a property in Malaysia, and the rate depends on who you are and how long you held it. As at October 2026, a Malaysian citizen or permanent resident pays 30% on a sale within the first three years, 20% in the fourth year, 15% in the fifth year and 0% from the sixth year. An owner who is not a citizen and not a permanent resident pays 30% in the first five years and 10% after that. A Malaysian company pays 30%, 30%, 20%, 15% and then 10%.
Since 1 January 2025 the tax is self-assessed: the seller files a return online within 60 days of the sale and works out the tax in it.
RPGT rates by holding period (checked, updated October 2026)
| When you sell | Citizens and permanent residents | Companies incorporated in Malaysia | Not a citizen and not a permanent resident; foreign companies |
|---|---|---|---|
| Within 2 years | 30% | 30% | 30% |
| In the 3rd year | 30% | 30% | 30% |
| In the 4th year | 20% | 20% | 30% |
| In the 5th year | 15% | 15% | 30% |
| In the 6th year and after | 0% | 10% | 10% |
Notes on the columns:
- The first column covers individuals who are Malaysian citizens or permanent residents. The 0% from the sixth year has applied since 1 January 2022.
- The second column also covers a trustee of a trust and a body registered under Malaysian law.
- The third column also covers the executor of the estate of a person who was not a citizen and not a permanent resident.
How the years are counted. The holding period runs from your acquisition date to your disposal date. Where there is a written agreement, each of those is the date of the agreement. So the clock normally starts on the date of your sale and purchase agreement when you bought, and stops on the date of the agreement when you sell.
Exemptions (checked, updated October 2026)
| Exemption | Who can use it | What it gives |
|---|---|---|
| Individual exemption | Individuals only, on each disposal | RM 10,000 or 10% of the chargeable gain, whichever is greater |
| Private residence | Malaysian citizens and permanent residents, once in a lifetime | The whole gain on one private residence, by election on Form CKHT 3. The election cannot be withdrawn |
A company gets neither of these.
There are other reliefs, for example for some transfers within a family and for inherited property. They turn on the details of each case, so ask your lawyer rather than rely on a summary.
How the gain is worked out
- Take the selling price and deduct allowable expenses and the costs of selling. That is the disposal price.
- Take what you paid for the property and add the costs of buying it. That is the acquisition price.
- Disposal price less acquisition price is the gain.
- An individual then deducts the exemption of RM 10,000 or 10% of the gain, whichever is greater.
- Any allowable loss from an earlier disposal can be deducted.
- What is left is taxed at the rate in the table.
Keep the receipts for legal fees, stamp duty and work that added value to the property. Your lawyer or tax agent will tell you which of them count.
A worked example
Bought for RM 600,000, sold for RM 750,000 in the fourth year. To keep the arithmetic simple this example ignores buying and selling costs, which would reduce the gain.
| Step | Malaysian citizen | Foreign owner |
|---|---|---|
| Gain | RM 150,000 | RM 150,000 |
| Individual exemption (10% of the gain) | RM 15,000 | RM 15,000 |
| Chargeable gain | RM 135,000 | RM 135,000 |
| Rate in the 4th year | 20% | 30% |
| RPGT | RM 27,000 | RM 40,500 |
| Withheld by the buyer from the price | 3% = RM 22,500 | 7% = RM 52,500 |
Sold in the sixth year instead, the citizen's rate is 0% and the foreign owner's rate is 10%, which is RM 13,500 on the same gain.
How RPGT is filed and paid (checked, updated October 2026)
For disposals from 1 January 2025, RPGT is under self-assessment. The return you file is treated as the assessment, and LHDN does not issue a separate notice.
| Step | Who | Deadline |
|---|---|---|
| File the return online (Form CKHT 1A) through e-CKHT on MyTax | Seller | Within 60 days of the disposal |
| File the return online (Form CKHT 2A) | Buyer | Within 60 days of the acquisition |
| Withhold part of the price and send it to LHDN | Buyer | Within 60 days of the disposal |
| Pay any balance of tax | Seller | Within 90 days of the disposal |
| Keep the documents | Both | 7 years |
What the buyer withholds
| Seller | Amount withheld |
|---|---|
| Citizen or permanent resident | 3% of the price |
| Company, selling within 3 years | 5% of the price |
| Company, selling from the 4th year | 3% of the price |
| Not a citizen and not a permanent resident, or a foreign company | 7% of the price |
The amount withheld is the lower of that percentage and the whole of the cash paid. From the 2026 year of assessment, if the seller tells the buyer the amount of tax under the return before the money is sent, the buyer may send that amount instead where it is lower. A buyer who sends the money late is charged an extra 10% on the unpaid amount.
Other points:
- Paper returns are not accepted. A disposal that is exempt or shows no gain is reported on Form CKHT 3.
- Buying from a developer is different: the developer's sale is taxed as business income, so the RPGT return does not apply to that sale.
- In practice your lawyer prepares and files the forms. The deadlines are still yours.
RPGT and your plan to sell
RPGT is one reason a short holding period costs more. If you are a citizen thinking of selling in year four or five, compare the tax now with the tax if you wait. If you are a foreign owner, the rate only drops after the fifth year, and it drops to 10%, not to zero. None of this tells you what the property will sell for; it only tells you how the tax is counted.
Related guides: stamp duty in 2026 for the tax when you buy, Malaysian property taxes explained for the full list, and minimum price for foreigners by state.
Check before you sign
The figures on this page were checked on 3 October 2026. They can change with each Budget, and this page is not tax or legal advice; confirm your position with your lawyer or LHDN before signing a sale. To talk through a sale or a purchase, WhatsApp Shyan Yee (REN 46305, IQI Realty) at +60 17-279 8932.
Frequently Asked Questions
What is the RPGT rate in Malaysia in 2026?
As at October 2026, for Malaysian citizens and permanent residents it is 30% for a sale within the first three years, 20% in the fourth year, 15% in the fifth year and 0% from the sixth year. For an owner who is not a citizen and not a permanent resident it is 30% for the first five years and 10% from the sixth year. For a Malaysian company it is 30%, 30%, 20%, 15% and then 10% from the sixth year.
Do I pay RPGT if I sell after 5 years?
A Malaysian citizen or permanent resident who sells in the sixth year or later pays 0%. A foreign owner or a company still pays 10% from the sixth year.
How much RPGT do foreigners pay?
An individual who is not a Malaysian citizen and not a permanent resident pays 30% of the chargeable gain if the sale is within the first five years, and 10% from the sixth year. The same schedule applies to a company not incorporated in Malaysia.
How is the holding period counted?
From the date you acquired the property to the date you dispose of it. Where there is a written agreement, both dates are the date of that agreement, so the clock normally runs from the date of your purchase agreement to the date of your sale agreement.
What exemptions are there from RPGT?
An individual gets an exemption of RM 10,000 or 10% of the chargeable gain, whichever is greater, on each disposal. A Malaysian citizen or permanent resident can also elect, once in a lifetime, to have the gain on a private residence exempted in full.
When must the RPGT return be filed?
Within 60 days of the date of disposal, by both seller and buyer, online through e-CKHT on the MyTax portal. Paper forms are not accepted. For disposals from 1 January 2025 the seller works out the tax in the return and no notice of assessment is issued.
When is RPGT paid?
The buyer withholds part of the price and sends it to LHDN within 60 days of the disposal: 3% where the seller is a citizen or permanent resident, 7% where the seller is a foreign owner, and 5% or 3% where the seller is a company. If the tax is more than the amount withheld, the seller pays the balance within 90 days of the disposal.
Is RPGT charged on the selling price or on the profit?
On the profit. The chargeable gain is the disposal price, after allowable expenses and the costs of selling, less the acquisition price, which includes the costs of buying. The amount the buyer withholds is a percentage of the price, but that is only a payment towards the tax.
Do I still file if I made no gain or the rate is 0%?
A disposal that is not taxable or is exempt is reported on Form CKHT 3 rather than left unreported. Ask your lawyer to file it within the same 60 days.
Written by
REN 46305 · IQI Realty Sdn Bhd · Kuala Lumpur
Licensed real estate negotiator focused on new launches in Kuala Lumpur, Selangor and Johor Bahru. Articles draw on developer material and site visits; prices and rules change, so confirm the latest before you buy.
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