5. Brief me on Malaysia's Real Property Gain Tax 1976 (RPGT) Act.

Real Property Gain Tax Act 1976 (RPGT)

Update -  Effective 1st April, the RPGT (Real Property Gains Tax) has been exempted.

It is a TAX to be charged in respect of chargeable gain accruing on the disposal of any real property fall under this Act.

RPGT = Disposal Price – Acquisition Price

  1. Acquisition Price

    Purchase Consideration
    • (a) Fees, Commission, cost of professional services
    • (b) Cost of Transfer (Stamp Duty)
    • (c) Cost of advertising (looking for Seller)
    • (d) Compensation for damage
    • (e) Receipt of Insurance policy for damages
    • (f) Deposits forfeited

  2. Disposal Price

    Dispose Consideration
    • (a) All expenses in enhancing / preserving extension
    • (b) All expenses incurred after acquiring the asset in respect
    • (c) All incidental expenses relating to disposal (legal fee)
    • (d) Advertising cost (looking for buyer)
      *Relief: Less 10% or RM5000.00 which ever is higher for Individual

  3. Disposed by Individual

    Category of Disposal  Rate of Tax 
    Within 2 years after the date of acquisition  30%
    3rd year after the date of acquisition  20%
    4th year after the date of acquisition  15%
    5th year after the date of acquisition  5%
    6th year after the date of acquisition  Nil

  4. Disposed by Company

    Category of Disposal  Rate of Tax 
    Within 2 years after the date of acquisition  30% 
    3rd year after the date of acquisition  20%
    4th year after the date of acquisition  15%
    5th year after the date of acquisition  5%

  5. Disposed by Foreigner (Not A Citizen/Permanent Resident)

    Category of Disposal  Rate of Tax 
    Disposal within 5 years after the date of acquisition  30%
    Disposal in the 6th year after the date of acquisition  5%

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