Real property gains tax compliance and advisory
Real Property Gains Tax
Real Property Gains Tax (RPGT), governed by the Real Property Gains Tax Act 1976, is levied on gains arising from the disposal of chargeable assets such as land, residential or commercial properties, and agricultural holdings. The tax applies in the year of disposal, and is imposed on the disposer, regardless of their tax residency status, as long as the property is situated in Malaysia.
The scope of RPGT encompasses a wide range of entities including individuals, corporations, partnerships, trustees, and other chargeable persons. A “disposal” includes any transaction resulting in the transfer of ownership, whether by sale, transfer, gift, assignment, or other arrangements.
RPGT Rates
RPGT rates differ according to disposer categories and holding period of the chargeable asset. The disposer is divided in 3 parts of categories as per Schedule 5 RPGT Act.
Part I: Except Part II and III. This category covers individuals who are Malaysian citizens or permanent residents, including partners in partnerships.
Part II: Includes companies incorporated in Malaysia, trustees of trusts, and bodies of persons registered under any Malaysian law.
Part III: Comprises foreign individuals and foreign entities. This includes disposers who are non-citizens and non-permanent residents, executors of estates of non-citizens, and companies not incorporated in Malaysia.
Disposal | Part I (%) | Part II (%) | Part III (%) |
Within 3 years | 30 | 30 | 30 |
In the 4th year | 20 | 20 | 30 |
In the 5th year | 15 | 15 | 30 |
In the 6th and subsequent years | 0 | 10 | 10 |
How we can help
At ECOVIS Malaysia, we provide comprehensive property tax management services designed to help you minimise your tax liabilities, optimise strategic planning, and ease administrative burdens. We understand the distinct complexities involved across a wide range of property types—including retail, office, industrial and specialised use properties. With deep industry experience and technical expertise, our team is equipped to deliver accurate, efficient, and reliable solutions tailored to your property portfolio.