Malaysia RPGT: tax when you sell a property

Perhaps the next home is starting to make more sense, and you are thinking about selling this one. Before working out what you can carry into the next purchase, separate the sale price from the taxable gain. RPGT applies to chargeable gain, not automatically to the full selling price. The legal owner and holding period determine the rate; Malaysian PRs and non-citizens who are not PRs fall into different categories.

Thinking about selling? Send Jacky 1) the property or project and 2) the year you expect to sell. He can help organise the questions for the sale; a tax adviser can confirm the RPGT calculation. Prepare my sale questions →

Which individual rate schedule fits the seller?

For an individual, Part I applies to citizens and permanent residents. Part III applies to a person who is neither a citizen nor a permanent resident; foreign companies also fall within Part III. A company incorporated in Malaysia is Part II and has a separate schedule. These rates apply to chargeable gain. The acquisition and disposal dates used by law determine the holding period, so it is not simply a calendar-year label. See LHDN’s current rate tables.

What goes into the taxable-gain calculation?

As you put the sale papers together, calculate the difference between disposal and acquisition consideration, then apply only the costs and reliefs the law allows. Keep the stamped purchase and sale agreements, transfer records, legal and agent invoices, and receipts for qualifying improvements. A routine repair or renovation receipt does not automatically qualify; the rules define which incidental costs and enhancement expenditure may be deducted. Use allowable gain and loss guidance and ask a tax adviser about borderline items.

Which exemption could apply to this home?

• An individual may claim the Schedule 4 exemption of RM10,000 or 10% of the chargeable gain, whichever is higher, subject to the rules. It is not a special exemption only for citizens or PRs.
• The once-in-a-lifetime private-residence exemption is different. It is available only to an individual who is a Malaysian citizen or permanent resident, for one qualifying private residence, and must be elected through the required filing. A non-citizen who is not a PR cannot claim it.
• Other exemptions or “no gain, no tax” outcomes depend on the facts and statutory conditions. Do not assume that a transfer, loss or gift is automatically exempt.

For this purpose, LHDN defines a private residence as a Malaysian building or part of a building owned by an individual and occupied, or certified fit for occupation, as a residence. The once-only election cannot be withdrawn after it is made. Read LHDN’s exemption conditions before deciding whether to use it.

Filing, tax payment and buyer retention have different dates

For disposals from 2025, Malaysia uses RPGT self-assessment: the seller calculates and reports the gain instead of waiting for a notice of assessment. Keep the related records for seven years. The buyer’s remittance is a payment on account, not the seller’s final tax bill. LHDN’s self-assessment page explains filing and tax-payment dates, while LHDN’s buyer remittance page covers the amount the buyer retains.

What amount does the buyer send to LHDN?

Before sale proceeds are allocated, compare the statutory seller category and any available remittance option with both conveyancing lawyers. The usual retention rate follows the seller’s statutory category: Part I 3%; Part II 5% for disposals within three years and 3% from the fourth year; Part III 7%. Since Year of Assessment 2026, the buyer may instead remit the lower notified deemed-assessed tax amount if the seller tells the buyer before remittance. The amount is based on consideration, or the available cash consideration, and the rules include a cap.

Before you accept an offer, what needs to line up?

• Ask your tax adviser to confirm your category: citizen, PR, non-citizen/non-PR, or company.
• Set up a gain calculation using records of purchase price, allowable costs and reliefs.
• Plan for filing within 60 days and payment within 90 days, even if the completion monies arrive on a different schedule.
• Have the buyer’s lawyer confirm the retention amount and 60-day remittance responsibility.

Which sales does this guide cover?

This guide summarises individual residential-property cases. Company ownership, gifts, inherited property, joint ownership, property trading and special reliefs need a separate review. For the sale process, see selling as a foreign owner. General information checked 23 October 2026; not tax or legal advice.