How to Calculate RPGT: The Complete Property Gains Tax Guide for Malaysia

If you make a profit selling property in Malaysia, you pay RPGT (Real Property Gains Tax). How much depends mainly on how long you held it — the longer you hold, the lower the rate.

RPGT rates (by holding period)

When you dispose	Citizen / PR	Foreigner / non-citizen	Company
Within years 1–3	30%	30%	30%
In the 4th year	20%	30%	20%
In the 5th year	15%	30%	15%
6th year onwards	0%	10%	10%

The key point: a Malaysian citizen who sells after holding for 5 full years (from the 6th year) pays 0% RPGT.

The holding period runs from the Sale & Purchase Agreement (S&P) date to the disposal (sale) date.

How it's calculated

disposal price
 − acquisition price
 − allowable costs (legal fees, agent commission, renovation, stamp duty…)
 = chargeable gain
 − Schedule 4 exemption
 = net chargeable gain
 × applicable rate
 = RPGT payable

Schedule 4 exemption (individuals only)

An individual gets one exemption: the higher of RM10,000 or 10% of the chargeable gain.

Worked example

Say you're a citizen who bought at RM400,000 and sold in the 4th year for RM600,000, with RM30,000 of allowable costs:

chargeable gain = 600,000 − 400,000 − 30,000 = RM170,000
Schedule 4 exemption = max(10,000, 170,000×10%=17,000) = RM17,000
net chargeable gain = 170,000 − 17,000 = RM153,000
year-4 citizen rate = 20%
RPGT payable = 153,000 × 20% = RM30,600

The once-in-a-lifetime exemption (don't waste it)

A Malaysian citizen gets one full RPGT exemption on a private residence in their lifetime. Use it on the sale with a large gain at a high-rate holding period — don't waste it on a small amount or a 6th-year sale (which is already 0%).

What to file after selling (within 60 days)

Within 60 days of disposal you must submit:

• CKHT 1A — filed by the seller (disposer)
• CKHT 2A — filed by the buyer
• CKHT 502 — the buyer usually withholds part of the price (3% for citizens) and remits it to LHDN, reconciled later

Even if the result is 0%, you still file — otherwise you risk a penalty.

Common mistakes

• Assuming 5 years means 0% — it's 0% only once you complete 5 years and enter the 6th year; a day short doesn't count.
• Omitting allowable costs — renovation, legal fees and agent commission are all deductible; keep your receipts.
• Forgetting the lifetime exemption — using it at the wrong time wastes it.

Want to know what your sale would cost? Use the free property tax calculator — enter acquisition price, disposal price and holding period to get your RPGT instantly. For tricky cases, just ask the AI tax assistant.