The tax on your property sale profit

Real Property Gains Tax (RPGT)

Calculate Malaysia's Real Property Gains Tax (RPGT) on a property sale, based on your gain, holding period, and disposer type.

Formula

gain = selling price − purchase price · exemption = greater of RM10,000 or 10% of the gain (individuals only) · RPGT = (gain − exemption) × the rate for your disposal year and disposer type

Assumptions

• Uses the disposal-year rate schedule effective since 1 January 2022: 30% for years 1-3, 20% for year 4, 15% for year 5 for individuals and local companies; individuals then drop to 0% from year 6, local companies to 10%; non-citizens and foreign companies stay at 30% through year 5 and 10% from year 6 onward.
• Excludes allowable costs beyond the purchase price (renovation costs, legal fees, agent commission) that could further reduce the chargeable gain — these would lower the RPGT owed if included.
• Does not model specific exemptions (e.g. once-in-a-lifetime private residence exemption, transfers between spouses/family, or company reorganizations).
• This is an estimate for planning purposes only — consult LHDN or a tax professional for an actual RPGT filing.

Frequently asked questions

Why is there a difference between citizens/PRs and companies from year 6 onward?
Malaysian citizens and permanent residents drop to a 0% RPGT rate from the 6th year of ownership onward, while Malaysia-incorporated companies continue paying 10% indefinitely — the exemption to zero only applies to individual citizen/PR disposers.

Does the RM10,000/10% exemption apply to companies too?
No — this waiver (the greater of RM10,000 or 10% of the gain) is only available to individual disposers, not companies, regardless of residency status.

What if I made a loss on the sale?
No RPGT applies — the tax is only charged on a gain (selling price above purchase price). A loss isn't taxed, though it also can't be used to offset other income under RPGT rules.

Sources

• LHDN — Schedule of Tax Rates for Resident Individuals