Malaysia Real Property Gains Tax (RPGT) Calculator

About the Malaysia Real Property Gains Tax (RPGT) Calculator

Real property gains tax (RPGT, cukai keuntungan harta tanah) is charged on the gain when you dispose of land or a building in Malaysia. The rate depends on who you are and how long you held the property: a Malaysian citizen or permanent resident pays 30% within three years, 20% in the 4th year, 15% in the 5th year and nothing from the 6th year; companies and foreigners pay more (LHDN rate table).

This calculator follows LHDN’s working: the disposal price less the costs of selling and of improvements, less the acquisition price and the costs of buying, then the individual exemption of RM10,000 or 10% of the gain, whichever is greater, any allowable losses, and the rate for your holding period. It also works out the 3% (or 5% or 7%) retention your buyer keeps back for LHDN, and shows the day the rate next falls. Nothing you type leaves your browser.

Without a pass, the free preview shows the RPGT payable in full, with the holding period, the rate and the first rows of the working and of the holding bands; a Pro pass unlocks the chargeable gain, the buyer’s retention, every line of the working, the tax in every holding band and the summary to copy.

Common uses

• See how much RPGT you pay if you sell now, and how much less if you wait for the next band.
• Check the 3% retention your buyer’s lawyer will keep back, and whether you will get some of it back.
• Decide whether to use your once-in-a-lifetime private residence exemption on this sale.
• Work out each co-owner’s share of the tax on a jointly owned property.

The rates

Schedule 5 of the RPGT Act sets three scales by disposer and by the year after acquisition in which the disposal falls (LHDN):

• Part I, individuals who are citizens or permanent residents: within 2 years 30%, 3rd year 30%, 4th year 20%, 5th year 15%, 6th year or later 0%.
• Part II, companies set up in Malaysia, trustees and registered bodies: 30%, 30%, 20%, 15%, then 10% from the 6th year.
• Part III, individuals who are not citizens or permanent residents, and foreign companies: 30% to the end of the 5th year, then 10%.

The holding period runs from the date of the agreement you acquired under to the date of the agreement you dispose under (without a written agreement, the completion date) (LHDN). Each year after acquisition ends on an anniversary of the acquisition date, so the 4th year starts the day after the third anniversary; the calculator shows the day each band starts for your dates.

Working out the chargeable gain

Gain = (disposal price − costs of selling − enhancement costs) − (acquisition price + costs of buying) (LHDN).

• Costs of selling: the agent’s commission, legal fees, valuation and advertising to find a buyer.
• Enhancement costs: work that adds to or keeps the property’s value and is still there when you sell, such as an extra bedroom, built-in cabinets or a fence, and costs of defending your title. Replacing old fittings does not count.
• Costs of buying: legal fees, stamp duty and agent’s commission when you bought.
• Not allowed: loan interest, and costs that were deductible for income tax.

An individual then takes off RM10,000 or 10% of the gain, whichever is greater (Schedule 4 paragraph 2), and allowable losses from earlier disposals; RPGT is the rate × what is left (LHDN).

Exemptions and transfers within the family

A Malaysian citizen or permanent resident can elect the private residence exemption once in a lifetime: the whole gain on one home is exempt. You elect it through Form CKHT 3 on e-CKHT and it cannot be withdrawn, so keep it for the home where it saves the most (LHDN).

Gifts between spouses, between parents and children and between grandparents and grandchildren are treated as no gain and no loss when the donor is a Malaysian citizen; the recipient takes over the donor’s acquisition price if the gift was within five years of the donor’s purchase, or the market value after that. Property passing on death is also no gain, no loss (LHDN).

The buyer’s retention, returns and losses

The buyer must keep back part of the price and pay it to LHDN within 60 days after the disposal: 3% when the seller is in Part I, 5% for a Part II seller within three years (3% after that) and 7% for a Part III seller, or a smaller amount equal to the deemed tax when the seller notifies it first. It counts towards your RPGT, and any excess is refunded (LHDN). If your tax is more than the amount kept back, you pay the balance within 90 days after the disposal date (LHDN operational guidelines).

You report the disposal on Form CKHT 1A (the buyer on CKHT 2A) through e-CKHT within 60 days, even when the rate is 0%. With a loss, no gain or the private residence exemption, you also give the buyer a copy of Form CKHT 3, and nothing need be kept back (LHDN operational guidelines).

An allowable loss is first set off against your chargeable gains on other disposals in the same year of assessment. What is left is set off from the first later year in which you have chargeable gains, for a period of 9 consecutive years of assessment, and a balance left after that lapses (LHDN; Finance Act 2025).

Limitations

• Covers disposals of land and buildings from the start of 2022 under the current rate tables. Shares in real property companies, and older disposals, have rules of their own.
• Old acquisitions use a market value instead of the price paid: the value at the start of 2013 for a citizen or permanent resident who acquired before then, and the value at the start of 1970 for a company or a foreigner who acquired before then. Enter that value as the purchase price, with no costs of buying; the calculator says so when your dates call for it.
• Compensation or insurance money received for damage to the property, and a buyer’s deposit you kept when an earlier sale fell through, reduce the acquisition price: take them off the purchase price you enter.
• For a partial disposal of your holding (part of the land), the minimum exemption is reduced in proportion; the calculator assumes you sell your whole share.
• Inherited property and gifts take a deemed acquisition date and price: enter those values (see “Exemptions and transfers within the family”).

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