RPGT- Real Property Gain Tax

Capital gains are normally not chargeable on tax, however measures have been taken in order to control the price of the property market in Malaysia. Real Property gain tax is charge on the gains arising from the disposal of properties.

Effective from 1 January 2013, the Malaysian government has proposed an increase of 5% to the current RPGT in order to curb speculation and flipping activities in the local real property market. 

The RPGT as of 1st January 2013 is as below:

The following RPGT exemptions which were implemented in the previous Budget remain the same:

1. RPGT exemption on gains from the disposal of property by individual once in a lifetime.
2. RPGT exemption of up to RM 10,000 or 10% of the net gains (whichever is higher) from the disposal of real property by individuals
3. RPGT exemption on disposal of real property between family members (husband and wife, parents and children, grandparents and grandchildren)