RPGT is a tax imposed on gains from disposal of all types of properties such as residential and commercial buildings, land and shares of real property companies. RPGT is imposed on the net gains from disposal of property after deducting the following costs:-

Acquisition price
Stamp duty
Legal fees
Renovation costs
Commission for sales and administrative payments

RPGT Tax Exemption 

1) Exemption on gains from the disposal of one residential property once in a lifetime to individual (Please utilize this once in lifetime opportunity wisely!) 

2) Exemption on gains arising from the disposal of real property between family members (e.g. husband and wife, parents and children and grandparents and grandchildren)

3) 10% of profits OR RM10,000 per transaction (whichever is higher) is not taxable

RPGT Rate

Accordance with the Budget 2014 announcement, the rates for RPGT has been increased. Government’s reason for the hike is mainly to reduce speculative activities on housing prices and real estate market.

Government believes that hiking up RPGT enable the Rakyat to purchase affordable new houses. However in long term, hike in RPGT rates will slow down the sales of the secondary markets (sub-sales) and also might reduce property investments by local and foreign property investors.  

The current RPGT rates vary from 0% to 30%, depending on the holding period. The holding period refers to the period between the acquisition date and the disposal date of the property.

To further curb speculative activities, the RPGT rates on disposal of properties and shares in real property companies effective 1 January 2014 shall be as follows:-