Tag Archives: Malaysia Real Property Gains Tax

How to Calculate Real Property Gains Tax?

Under Budget 2010, effective from 1st January 2010, Real Property Gains Tax (RPGT) has been re-imposed and it has fixed at 5% on the gains from the disposal of real property. The RPGT for the first year is 5% and it’s same for 2nd, 3rd, 4th and 5th year whereas previously the Real Property Gains Tax (RPGT) is progressive from 0 to 30 percent, depending on the property holding period.

Real Property Gains Tax

Previous Real Property Gains Tax RPGT Rates

The below rates apply for disposals before 1st Jan 2010.

Category of Disposal Rate of Tax (%)
Disposal within 2 years 30
Disposal in the 3rd year 20
Disposal in the 4th year 15
Disposal in the 5th year 5
Disposal in the 6th year and subsequent years 0

Continue reading