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RPGT

Introduction & Basis of Taxation

  1. Real Property Gains Tax (RPGT) is administered by Inland Revenue Board of Malaysia under the Real Property Gains Tax Act 1976 (RPGTA). RPGTA was introduced on 7.11.1975 to replace the Land Speculation Tax Act 1974.
  2. RPGT is charged on gain from disposal of chargeable asset situated in Malaysia such as houses, commercial buildings, farms and vacant land. With effect from 21.10.1988, RPGT is extended to gain from disposal of shares in real property companies (RPC).

    'Chargeable asset' means any real property including any interest or right in or over an asset. Chargeable asset includes shares as provided under paragraph 34 and 34A Schedule 2 of RPGT which results in a chargeable gain.

    'Dispose' means sell, convey, transfer, assign, settle or alienate whether by agreement or by force of law

    'Gain' means gain other than gain or profits chargeable with or exempted from income tax under the Income Tax Act 1967 (ITA) or in the case of unit trust, gain not treated as income under the ITA.

  3. RPGT is imposed on disposers in the year of assessment where the disposal transaction takes place. Year of assessment shall be the calendar year.
  4. Disposer whether resident in Malaysia or not, is taxable on the gain accrued on the disposal of chargeable assets situated in Malaysia. Disposer includes individual, company, partnership, organisation, trustees and other chargeable persons pursuant to Schedule 1 (section 6) RPGTA.
  5. For detailed information on RPGT, reference can be made to the RPGT Guidelines dated 6.1.2023, 13.6.2018 or 18.6.2013 (whichever is applicable).
  6. With the introduction of Capital Gains Tax (CGT) effective from 1 January 2024, gains or profits from the disposal of shares in a real property company (RPC share) by companies, limited liability partnerships, trust bodies, and cooperatives, including Labuan entities which subject to Income Tax Act 1967, are no longer subject to the RPGTA.

    However, the disposal of RPC shares by Labuan entities carrying on business activities under section 2B of the Labuan Business Activity Tax Act 1990 (LBATA) remain to be taxed under RPGTA.

    Detailed information on CGT may be referred to in the CGT Guidelines for Unlisted Shares dated 21 July 2025.

  7. For disposal of other chargeable assets, companies, limited liability partnerships, trust bodies, and cooperatives including Labuan entities shall remain subject to RPGTA in respect of the disposal of other real property.

RPGT Guidelines

RPGT Guidelines

Dated: 06.01.2023

Download (967.01 KB)

RPGT Guidelines

Dated: 13.6.2018

Download (550.48 KB)

RPGT Guidelines

Dated: 18.6.2013

Download (522.79 KB)