RPGT stands for Real Property Gain Tax is a form of Capital Gain Tax that is imposed on the disposal of property in Malaysia.
Based on the Real Property Gain Tax Act 1976, RPGT is a tax on chargeable gains derived from the disposal of property. A chargeable gain is a profit when the disposal price is more than the purchase price of the property.
Home seller/owner will be only be taxed on the positive net capital gains which are disposal price, minus the purchased price, minus the miscellaneous charges such as; (stamp duty, legal fees, advertisement charges, etc).
Additionally, a waiver on the taxable amount is granted to individuals (but not companies). The holding period is from the date on the S&P agreement till to the disposal date.
For a simple and quick calculation, the formula is:
Chargeable Gain = Disposal Price – Purchased Price
Net Chargeable Gain = Chargeable gain – Cost (Agency fee, Legal fee and Renovation fee, etc..)
Tax payable = RPGT rate (based on holding period)* Net Chargeable Gain
|Holding Period||RPGT Rate in 2020|
|～ 3 years||30%||30%||30%|
|6 years ～||10%||5%||10%|