RPGT is the tax you pay on the profit when you sell a property. Most sellers think it is a bill that comes later, after the sale money is already in the bank. It isn’t. A slice is taken out before the cash ever reaches you.
Here’s my read: what trips sellers up is not the rate. It is the timing and the plumbing — who holds the money, who sends it to the tax office, and when the clock starts.
Who pays, and how the money moves
- Who bears it: the seller. It is a tax on your gain, not the buyer’s cost.
- Who holds it back: the buyer’s lawyer keeps a portion of your sale money and sends it to LHDN (the Inland Revenue Board, Malaysia’s tax office) on your behalf. You do not get that portion at completion.
- Your filing: you still have to file your own RPGT return within a fixed window after the sale. Miss it and penalties get added.
One thing to get straight: the amount held back and your actual tax bill are not the same number. If too much was held, the extra comes back to you after the tax office works out the final figure. If too little was held, you top up.
The rate vs the amount held back
These are two different things people blur together. The rate depends on how long you held the property and whether you are a local or foreign seller. The amount held back is a fixed slice of the sale price parked with the tax office up front. One is your final tax. The other is a deposit against it. Plan around the amount held back — that’s the cash you won’t see on completion day.
The actual rate by holding period, and the hold-back percentage, live in one place: my RPGT guide has the full rate breakdown and how to get your money out. Start there — it answers most of the “how much” before you need anything from me.
The rate and deadlines do change from year to year, so if you’re selling soon and want to confirm what applies right now for your holding period and status, message me, or check with LHDN or a licensed tax agent.
The one line to remember: know the RPGT number before you sign, not after you’ve counted the money.
Last verified: August 2026. This is my commentary, not tax, legal, or investment advice — rates, hold-back percentages, and deadlines change and depend on your holding period and seller status. Confirm the current figures with LHDN or a licensed tax agent before acting.
Full guide: Selling Property as a Foreigner: RPGT + getting your money out · Run the numbers: RPGT & property calculators.
Yong Wing How · Vivahomes Realty Sdn Bhd · REN 77674 · E(1)1670