Malaysia Real Property Gains Tax (RPGT) Guide 2026: Rates, Calculation & Foreigner Rules
Understanding Real Property Gains Tax (RPGT) in Malaysia—searched frequently as "malaysia rpgt 2026", "property gain tax malaysia 2026", "rpgt for foreigners in malaysia", or "selling property in malaysia tax"—is essential for property owners, real estate investors, and corporate entities. Enforced under the Real Property Gains Tax Act 1976 (Act 169) by LHDNM, RPGT applies to net capital gains derived from disposing of land, residential homes, commercial properties, and shares in a Real Property Company (RPC).
2026 RPGT Key Summary
- •Citizens & PRs (6th Year+): 0% RPGT rate on residential & commercial properties held >5 years.
- •Foreigners & Non-Citizens: 30% RPGT for disposals in 1st to 5th years; 30% in 6th year onwards.
- •Statutory Exemption: RM 10,000 or 10% of net gain (whichever is higher) per transaction.
- •CKHT 60-Day Deadline: Both buyer & seller must submit Form CKHT within 60 days of SPA execution.
1. Official 2026 RPGT Rate Schedule Table
The Real Property Gains Tax rate in Malaysia depends on three factors: taxpayer category (Citizen/PR vs Foreigner vs Company), property type (residential vs commercial), and holding period from acquisition date to disposal date.
| Disposal Holding Period | Malaysian Citizens & PRs | Malaysian Companies (Sdn Bhd) | Foreigners & Foreign Entities |
|---|---|---|---|
| Within 3 Years (1st to 36th Month) | 30% | 30% | 30% |
| In the 4th Year (37th to 48th Month) | 20% | 20% | 30% |
| In the 5th Year (49th to 60th Month) | 15% | 15% | 30% |
| 6th Year Onwards (From 61st Month) | 0% (EXEMPT) | 10% | 30% |
2. How RPGT is Calculated: Chargeable Gain Formula
RPGT is calculated on the Net Chargeable Gain derived after subtracting allowable acquisition expenses, renovation expenses, legal fees, agent commissions, and statutory exemptions from the gross disposal price.
3. RPGT Exemptions (Once-in-a-Lifetime & RM10k Exemption)
The Malaysian government grants specific statutory exemptions under Schedule 3 of the RPGT Act:
4. RPGT Rules & Withholding Tax for Foreigners
If a foreigner sells property in Malaysia, specific foreign tax rules apply under the RPGT Act:
- Flat 30% RPGT Rate: Foreigners pay 30% RPGT regardless of whether the property was held for 1 year or 10 years.
- 7% Purchaser Retention: When purchasing property from a foreigner, the buyer must retain 7% of the total purchase price (instead of the standard 3% for local sellers) and remit it to LHDNM within 60 days via Form CKHT 2A.
5. Corporate RPGT & Real Property Company (RPC) Shares
Companies acquiring real estate must consider Real Property Company (RPC) share rules under Section 15B.
If a controlled company owns real property (or RPC shares) whose defined value is at least 75% of its total tangible assets, the company is classified as an RPC. Selling shares in an RPC triggers RPGT in the exact same manner as selling physical property!
6. RPGT on Inherited Property & Gift Transfers
Transferring property through inheritance or family gifts is treated as follows:
- Inheritance Transfer: Deemed a "no gain no loss" transfer. The beneficiary inherits the deceased's original acquisition price and holding date.
- Family Gift Transfers: Transfers between husband and wife, or between parent and child (provided the parent/child is a citizen) are granted 100% RPGT exemption under Paragraph 12, Schedule 2.
7. CKHT Form Filing & Purchaser 3% Withholding
Both parties must file statutory forms with LHDN within 60 days of signing the Sale and Purchase Agreement (SPA):
- Form CKHT 1A: Submitted by the seller (declaring disposal price and acquisition history).
- Form CKHT 2A: Submitted by the buyer (declaring purchase details and 3% or 7% money retention).
- Form CKHT 3: Submitted by the seller if claiming 100% RPGT exemption.
Calculate your net property income and tax estimates using our Malaysia Rental & Property Tax Calculator.