Every person whether or not resident is chargeable to RPGT on gains arising from disposal of real property, including shares in a real property company (RPC).
Real property is defined as any land situated in Malaysia and any interest, option or other right in or over such land.
RPC is essentially a controlled company where its total tangible assets consists of 75% or more in real property and/or shares in another RPC.
A controlled company is essentially a company owned by not more than 50 members and controlled by not more than 5 persons.
Disposal is generally triggered upon transfer of ownership from one person to another whether by way of sale, conveyance, assignment, settlement, alienation, etc.
Disposal |
RPGT rates |
||
Companies / Trustee1 / Society3 (%) |
Individuals# (%) |
Individuals2, and Executor of deceased estate2, Companies2 (%) |
|
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 |
10 |
54 |
10 |
# Citizens and permanent residents
1 – Companies incorporated in Malaysia or a trustee of a trust
2 – Non-citizens and non-permanent residents and companies not incorporated in Malaysia
3 - Society registered under the Societies Act 1966 (w.e.f 1 January 2022, consists of body of persons registered under any written law in Malaysia)
4 - RPGT rates for disposals made in the 6th year and subsequent years reduced to 0% (w.e.f. 1 January 2022).
For each disposal, both the disposer and acquirer are required to submit RPGT return respectively within 60 days from the date of disposal.
The DGIR shall raise an assessment based on the RPGT returns.
The date of disposal is taken as the date of the written agreement of the disposal. In the absence of a written agreement, the date shall be taken as the earlier of full payment of the purchase consideration or the date when all things which are necessary for the transfer of ownership of the real property under any written law has been done. Where the disposal is subject to approval from the Government or State Government, the date of disposal is the date of such approval or if the approval is conditional, the date when the last condition is satisfied.
Where the purchase consideration consists wholly or partly of cash, the acquirer is required to withhold the lower of the entire cash consideration or:
That amount, whether or not withheld by the acquirer, is to be remitted to the DGIR within 60 days from the date of disposal. The amount remitted to the DGIR is to be applied against RPGT payable by the disposer.
The disposer is required to settle the balance of RPGT payable within 30 days from the date of the notice of assessment.
The following are some examples of exemptions from RPGT:
The following are some examples of transactions where the disposal price is deemed to be equal to its acquisition price:
The following are some examples of transactions where the disposer is treated to have received no gain and suffered no loss from the:
This publication is a quick reference guide outlining Malaysian tax information which is based on taxation laws and current practices. This booklet also incorporates in coloured italics the 2022 Malaysian Budget proposals based on the Budget 2022 announcement on 29 October 2021 and the Finance Bill 2021. These proposals will not become law until their enactment and may be amended in the course of their passage through Parliament.
This booklet is intended to provide a general guide to the subject matter and should not be regarded as a basis for ascertaining the liability to tax in specific circumstances. No responsibility for loss to any person acting or refraining from acting as a result of any material in this publication can be accepted by PricewaterhouseCoopers. Readers should not act on the basis of this publication without seeking professional advice.
Published by
PricewaterhouseCoopers Taxation Services Sdn Bhd (464731-M)
Level 10, 1 Sentral, Jalan Rakyat, Kuala Lumpur Sentral,
P.O. Box 10192, 50706 Kuala Lumpur, Malaysia
Tel: 03-21731188 Fax: 03-21731288