Real Property Gains Tax is the tax most owners only think about the week they sell — which is exactly when it is too late to plan for it. The rates by holding period, the two exemptions that matter, and how RPGT changes the timing of a landed sale.
When you sell a Malaysian property for more than you paid, the gain is taxed under the Real Property Gains Tax Act. The rate depends on two things only: who you are (citizen/PR, foreigner, or company) and how long you held the property. Ken Tck sees the timing question decide six-figure amounts on landed sales every year.
| Disposal in | Citizen / PR | Foreigner | Company (My) |
|---|---|---|---|
| Years 1–3 | 30% | 30% | 30% |
| Year 4 | 20% | 30% | 20% |
| Year 5 | 15% | 30% | 15% |
| Year 6 onwards | 0% | 10% | 10% |
The pattern is deliberate: speculation inside three years is taxed hard for everyone. For Malaysian citizens the tax disappears entirely from year six; foreigners and companies keep paying 10% forever. If you are a foreign owner, that 10% needs to be in your exit arithmetic alongside the 8% acquisition stamp duty — Malaysia now taxes you meaningfully at both ends of the transaction.
RPGT is charged on the chargeable gain, not the sale price: disposal price minus acquisition price, minus allowable costs. Keep every receipt, because these reduce the taxable gain:
Timing example: a citizen selling a semi-D bought 4½ years ago with an RM 800,000 gain pays 15% ≈ RM 108,000 (before exemptions). Waiting past the five-year mark: RM 0. If a sale is not urgent, the calendar is the cheapest tax adviser you will ever hire. See how to sell a semi-D or bungalow properly.
Both seller and buyer file CKHT forms with LHDN within 60 days of the SPA, and the buyer's lawyer retains a portion of the price (3% for citizens, higher for foreign sellers) against the tax. This is procedural when handled by a conveyancer who does it weekly — and a mess when it is not.
Thinking about when to sell in TTDI, Kota Damansara or elsewhere? Ken will tell you honestly whether waiting a year changes your net proceeds more than the market will. WhatsApp +60 13-565 6995 — or read how to value your property first.
Before listing, know your net-of-tax proceeds. Ken gives sellers a straight answer on whether to sell now or wait — including when waiting is the wrong call.
WhatsApp Ken · +60 13-565 6995