Best Malaysia PropertiesRPGT (real property gains tax, or CKHT) is a tax on the profit you make when you sell property in Malaysia. For Malaysian citizens and permanent residents, the rate is 30% if you sell within three years of buying, 20% in year four, 15% in year five and 0% from year six. You pay it on the gain after deducting purchase costs, selling costs, qualifying improvements and an exemption of RM10,000 or 10% of the gain, whichever is higher. You must still file the forms even when no tax is due.
RPGT rates in 2026
The rates in Schedule 5 of the Real Property Gains Tax Act 1976, as published by LHDN:
| When you sell (from date of purchase) | Citizens and PRs | Malaysian companies | Non-citizens and foreign companies |
|---|---|---|---|
| Within 3 years | 30% | 30% | 30% |
| In year 4 | 20% | 20% | 30% |
| In year 5 | 15% | 15% | 30% |
| Year 6 onwards | 0% | 10% | 10% |
As of November 2026, no change to these rates has taken effect for 2026. The holding period runs from the date you acquired the property to the date you dispose of it. For both, LHDN uses the date of the written agreement, normally the SPA, not the date the title is transferred.
How the gain is calculated
Chargeable gain = disposal price − acquisition price − exemption
- Acquisition price is what you paid plus incidental costs of buying. LHDN describes incidental costs as fees and commissions paid to a lawyer, valuer, surveyor, accountant or agent.
- Disposal price is the sale price minus incidental costs of selling (for example, the agent's commission and your lawyer's fees) and enhancement costs that still add value when you sell. LHDN's own example is a kitchen renovation. Routine repairs and maintenance do not count.
- Exemption: individuals can deduct RM10,000 or 10% of the chargeable gain, whichever is higher.
Keep receipts for everything. LHDN requires records to be kept for seven years. Whether a particular cost, such as stamp duty or advertising, is allowable is something to confirm with LHDN or a tax adviser before you rely on it.
Worked example: selling a condo in year 3
A Malaysian buys a condo in 2024 for RM500,000, paying RM10,000 in legal fees. In 2026 they spend RM20,000 on a new built-in kitchen. They sign an SPA to sell it in late 2026, within three years, for RM650,000, paying RM13,000 agent's commission.
| Step | Amount |
|---|---|
| Sale price | RM650,000 |
| Less agent's commission | −RM13,000 |
| Less kitchen renovation (enhancement) | −RM20,000 |
| Disposal price | RM617,000 |
| Purchase price plus legal fees (acquisition price) | RM510,000 |
| Gain | RM107,000 |
| Less exemption (higher of RM10,000 or 10%) | −RM10,700 |
| Chargeable gain | RM96,300 |
| RPGT at 30% | RM28,890 |
The buyer holds back 3% of the price, RM19,500, and pays it to LHDN. The seller then pays the remaining RM9,390 within 90 days of the disposal date.
The same sale in years 4, 5 and 6
| Sold in | Rate | RPGT on RM96,300 |
|---|---|---|
| Year 4 | 20% | RM19,260 |
| Year 5 | 15% | RM14,445 |
| Year 6 or later | 0% | RM0 |
From year six, a citizen pays no RPGT, but both buyer and seller must still file. The buyer still deals with the retention sum, and the seller can claim back any excess. The difference between selling in year three and year six in this example is close to RM29,000, which is why the SPA date matters if you are near a threshold.
The retention sum and who files what
| Who | What | When |
|---|---|---|
| Buyer | Retains 3% of the price (7% if the seller is a non-citizen; 5% or 3% for companies, depending on holding period) and remits it to LHDN | Within 60 days of the disposal date |
| Buyer | Files form CKHT 2A | Within 60 days |
| Seller | Files form CKHT 1A | Within 60 days |
| Seller | Pays any tax above the retention sum | Within 90 days |
In practice your lawyer handles the retention and filings. Since 1 January 2025, the forms must be filed online through e-CKHT on MyTax, and RPGT works on self-assessment: the return you file is treated as the assessment. From 2026, a buyer may remit a lower amount equal to the seller's self-assessed tax, if the seller notifies the buyer of it before the buyer pays. The buyer can still remit the standard percentage without waiting.
Penalties are steep. Not filing within 60 days can lead to a penalty of up to three times the tax, and a buyer who fails to remit the retention sum on time faces a 10% penalty on the unpaid amount.
Exemptions worth knowing
- Private residence exemption: citizens and PRs can claim a once-in-a-lifetime exemption on the sale of one private residence. It is claimed on form CKHT 3, and the election cannot be reversed, so it can only be used on one sale in your lifetime.
- Gifts within the family: transfers by way of gift between husband and wife, parents and children, or grandparents and grandchildren are treated as no gain and no loss, provided the person giving is a Malaysian citizen. The person receiving takes on the original cost for when they later sell.
- Transfers between spouses for money are also treated as no gain and no loss for resident citizens.
- Losses: an allowable loss on one disposal can be set off against later gains. From 2026, unused losses can only be carried forward for a limited number of years.
A temporary exemption for citizens selling up to three homes applied only to disposals from June 2020 to December 2021 and has expired.
Planning before you sell
- Check your SPA date for purchase and the date you expect to sign the sale SPA. A few weeks can move you into a lower band.
- Gather receipts for legal fees, agent's commission and genuine improvements.
- Budget for RPGT alongside the other costs of selling and buying again. Our cost of buying a home guide and home loan guide cover the next purchase.
- Use recorded sale prices to set expectations. Our property pages show psf ranges where we have them; see the best condos ranking or browse by area on the map.
This guide explains LHDN's published rules. It is not tax advice, so ask your lawyer or a tax adviser about your own sale.