Real Property Gain Tax Service in Malaysia - Expert Assistance

Published: 14 April 2025

Navigating Malaysia's property tax landscape can be daunting for property owners. Understanding Real Property Gains Tax (RPGT) is essential to managing your investments and ensuring compliance with local regulations. Whether you're buying, selling, or transferring property, expert guidance can make all the difference.

With expert assistance, managing your property taxes becomes simple and efficient. Learn how professional RPGT advisory services in Malaysia can help you save time, reduce errors, and stay compliant with tax laws.

Key Takeaways

• Expert Support: Simplify property tax compliance with professional assistance.
• Regulatory Compliance: Avoid penalties and miscalculations by staying up-to-date with local regulations.
• Tax Planning: Make better financial decisions through strategic tax planning.
• Estate and Family Transfers: RPGT advisory services ensure smooth property transactions, including family transfers or estate planning.

Understanding RPGT Malaysia

Real Property Gain Tax (RPGT) in Malaysia applies to most transactions involving real property or shares in a Real Property Company (RPC). Key definitions include:

• Real Property: Land in Malaysia and any buildings attached.
• Real Property Company (RPC): A controlled company where ≥75% of tangible assets are real property or shares in another RPC.

Disposal is defined in the RPGT Act as “sell, convey, transfer, assign, settle, or alienate whether by agreement or by force of law”. So even if you transfer the property to your family member or related party, you are still required to comply with the RPGT Act.

Responsibility of seller and buyer

Seller (Disposer)

• Submit the prescribed RPGT Return Form within 60 days of disposal, regardless of gain or loss.
• Pay the tax or balance within 90 days of disposal (if any).
• Retain records for 7 years for audit purposes.

Buyer (Acquirer)

• Submit the prescribed RPGT Return Form within 60 days of acquisition.
• Withhold and remit a portion of the consideration amount to the Inland Revenue Board of Malaysia (IRBM) within 60 days. A 10% increase on the unpaid amount will be imposed on the buyer and it will be considered a debt to the Government that must be paid to the IRBM.
• Retain records for 7 years for audit purposes.

Self-assessment system

Starting from 1 January 2025, RPGT filing is required to be completed online (e-filing) under the self-assessment system. Sellers must calculate the RPGT amount and file electronically via the MyTax portal within 60 days of disposal. The submitted RPGT return is deemed to be a notice of assessment made by the IRBM.

RPGT Rates

RPGT rates differ based on the asset holding period and type of disposer.

Disposal	Individual*	Company**	Other***
Within 3 years	30%	30%	30%
In the 4th year	20%	20%	30%
In the 5th year	15%	15%	30%
In the 6th year onward	0%	10%	10%

* Citizen and permanent residents
** Companies incorporated in Malaysia
*** Individual (non-citizen and non-permanent residents) / Company (not incorporated in Malaysia)

Exemptions You Should Know

Disposers may qualify for the following exemptions:

• RM10,000 or 10% of the chargeable gain, whichever is greater (individual)
• Lifetime exemption for a citizen or permanent resident disposing of one private residence.

No-gain-no-loss transactions

Some circumstances may result in no-gain-no-loss transactions where the acquirer is deemed to have acquired the real property at an acquisition price equal to the disposer’s acquisition price. For example: transfer between company’s group members, transfer as a gift, transfer by way of security and etc. Specific terms and conditions are required to be fulfilled to deem the transfer as a no-gain-no-loss transaction.

Filing Process of RPGT Return Forms

Knowing these rules and the administration process helps your business stay on the right track of the tax law.

With effect from 1 January 2025, the following RPGT forms are mandatory to submit to the IRBM online (i.e. e-filing) via the MyTax portal:

Roles	Forms to be filled
Disposer	e-CKHT 1A	Disposal of Real Property
	e-CKHT 1B	Disposal of RPC Share(s)
	e-CKHT 3	Disposal is not subject to RPGT or RPGT Exemption
Acquirer	e-CKHT 2A	Acquisition of Real Property or RPC Share(s)
	e-CKHT 502 (Mandatory for disposal until 31 December 2024)	Retain and Remit part of the consideration

How RPGT Impacts Your Investments

Taxes directly affect the profitability of your property investments. High RPGT rates can reduce returns and influence your decisions when buying, selling, or holding property. By working with professionals, you can minimise your tax burden, make more informed decisions, and ensure the profitability of your property ventures.

Let’s look at an example to better understand how RPGT affects property investment and working with tax advisors to minimise the tax burden.

• Mr. Z purchased a real property on 15 October 2021 for RM650,000. On 22 September 2025, Mr. Z engaged a real estate agent to sell the property to Mr. E in cash for RM950,000.
• Mr. Z has prepared the following RPGT computation

	RM
Disposal price	950,000
Less: Acquisition price	(650,000)
Chargeable gain	300,000
Acquisition date: 15.10.2021 Disposal date: 22.09.2025 Holding period: 3 years 11 months (disposal in 4th year)
RPGT at 20% of RM300,000	60,000

• With the assistance of a tax advisor, the following costs incurred by Mr. Z in relation to the real property have been identified.
  • Legal fees and stamp duty totaling RM15,000 spent for property acquired on 15 October 2021;
  • Renovation costing RM120,000 spent on the property in June 2023; and
  • Real estate agent fees of RM30,000 paid for the successful sale of property on 22 September 2025.
• The tax advisor has prepared the RPGT computation based on the supporting documents provided by Mr. Z as follows:

	RM	RM
Disposal price
Sale price	950,000
Less: Incidental deductible cost
- Real estate agent fee	(30,000)
- Enhancement cost	(120,000)
Disposal price		800,000
Acquisition price
Purchase cost	600,000
Add: Incidental costs of acquisition
- Legal fee and stamp duty	15,000
Acquisition price		(615,000)
Chargeable gain (Disposal price - Acquisition price)		185,000
Less: Exemption (Greater of RM10,000 or 10% of chargeable gain)		(18,500)
		166,500
Acquisition date: 15.10.2021 Disposal date: 22.09.2025 Holding period: 3 years 11 months (disposal in 4th year) RPGT at 20% of RM166,500		33,300

Meanwhile, the tax advisor has provided the following advices:

• Buyer's RPGT Obligation - Mr. E (the buyer) must retain 3% (RM28,500) of the cash consideration and remit it to the Director General of Inland Revenue (DGIR) along with Form CKHT 2A within 60 days of acquisition (deadline: 20/11/2025). A 10% penalty may be imposed if the amount has not been paid within the deadline.
• Disposer’s Responsibility - Mr. Z must submit Form CKHT 1A within 60 days of the disposal date (deadline: 20/11/2025). A penalty can be imposed up to 3 times the tax charged by the DGIR if the Form is not submitted within the deadline.
  
• Availability of exemption - Mr. Z, as a Malaysian citizen, may opt to apply for a lifetime RPGT exemption to fully exempt the chargeable gain, provided he has not used the exemption before. Alternatively, Mr. Z can choose to reserve the exemption if he anticipates a higher RPGT liability in the future.
  
• Timing Impact on RPGT Rate - If Mr. Z disposes of the property after 14 October 2025 (one month later), his RPGT rate will be reduced from 20% to 15% as the disposal falls within the 5th year of the holding period.
  
• Final RPGT Payment - Mr. Z must pay the remaining RPGT balance of RM4,800 (RM33,300 – RM28,500) within 90 days of disposal (deadline: 20/12/2025). A 10% penalty may be imposed if the amount has not been paid within the deadline.
  

With the assistance of a tax advisor, the tax burden has been reduced from RM60,000 to RM33,300. Further, the exemption and lowest tax rate may be applicable as well as the penalties for late submission of the Form and payment can be avoided.

The Role of YYC Advisors in RPGT Management

At YYC Advisors, we specialize in RPGT compliance service and providing expert tax solutions tailored to your needs.

Advantages	Description
Compliance Assurance	Ensure accurate filings and adherence to Malaysian tax laws.
Personalised Strategies	Tailored tax plans to minimise your property tax burden.
Expert Guidance	Professional insights for better financial decision-making.
Streamlined Process	Efficient management of filing and deadlines.

Using YYC Advisors can really improve how you handle RPGT. Our team of tax professionals is here to help you manage RPGT effortlessly, so you can focus on growing your investments.

Conclusion

Working with a professional tax agent in Malaysia can be highly beneficial. Companies like YYC Advisors provide valuable advice, ensuring your investments are secure and your taxes are managed effectively.

Managing RPGT doesn’t have to be a hassle. With expert guidance from YYC Advisors, you can stay compliant, save money, and maximize your property’s potential.

Remember, understanding your obligations can save you trouble and help you succeed in the property market. Gain the knowledge you need to confidently handle Malaysia's property tax. Contact us today for a free consultation and start your journey toward stress-free property tax management.

Take charge of your real estate today.