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The original purpose of the Malaysia RPGT Act was to put a lid on property speculation. Today, it is still the main purpose but the RPGT also serves as a useful form of revenue for the Federal Government of Malaysia.


RPGT chargeable on Individual :-
 
Disposal within two years after the date of acquisition of the chargeable asset - 30%
Disposal within two years after the date of acquisition of the chargeable asset - 20%
Disposal in the fourth year after the date of acquisition of the chargeable asset -15%
Disposal in the third year after the date of acquisition of the chargeable asset - 10%
Disposal in the fifth year after the date of acquisition of the chargeable asset  - 5%
Disposal in the sixth year after the date of acquisition of the chargeable asset - Nil
 
RPGT chargeble on companies :-
Disposal within two years after the date of acquisition of the chargeable asset - 30%
Disposal within two years after the date of acquisition of the chargeable asset - 20%
Disposal in the fourth year after the date of acquisition of the chargeable asset -15%
Disposal in the fifth year after the date of acquisition of the chargeable asset or thereafter - 5%
 
 
RPGT chargable on foreigners :-
Disposal within 5 years after the date of acquisition of the chargeable asset - 30%
Disposal in the sixth year after the date of acquisition of the chargeable asset or thereafter -5%

 

The  Real   Property Gains Tax  Exemption Order which  has been  gazetted as   P.U.(A) 146 on April 1, 2007 exempts the application of all provisions of the Real Property Gains Tax Act 1976. This Order came into force from April 1, 2007 and will apply to all disposals that occur with effect from April 1, 2007.

 

Latest RPGT rate of Malaysia -Budget 2010

In the Budget 2010, The Malaysia Government has re-imposed the Real Property Gains Tax (RPGT).
The RPGT is fixed at 5% on the gains from the disposal of property with effective from January 1, 2011.
I.e The RPGT for the first year is 5% and it’s same for second, third, fourth and fifth year. 
Disposals of property from sixth year onwards are not subject to RPGT.

Latest RPGT rate of Malaysia -Budget 2011

In the Budget 2011, The Malaysia Government has changed the rate  of the Real Property Gains Tax (RPGT).
The RPGT is fixed at 10% on the gains if the disposal is within the first two year effective from January 1, 2012.
The RPGT  for third, fourth and fifth year. 
Disposals of property from sixth year onwards are not subject to RPGT.