Property
Malaysia — Property: Property Taxes
Malaysia taxes gains on the disposal of real property through the Real Property Gains Tax (RPGT). For individuals and partnerships (Part I), the HASiL table lists 30% for disposals within the first three years, 20% in the fourth year and 15% in the fifth year, and RPGT is not imposed on these disposers after five years from acquisition (from 1 January 2022). The rates for companies and trustees (Part II) and for non-citizens or non-permanent residents (Part III) remain unchanged and are on the HASiL table. From 1 January 2026, amendments give the acquirer an extra option to remit the retention sum based on the tax deemed assessed, and the return and retention sum are due within 60 days of acquisition. Stamp duty is a separate tax; check the stamp duty office for current rates.
Key facts
- RPGT for individuals and partnerships (Part I): 30% within three years of acquisition; 20% in year four; 15% in year five; not imposed after five years (from 1 January 2022).
- Rates for companies and trustees (Part II) and for non-citizens or non-permanent residents (Part III) are unchanged; see the HASiL table.
- A disposer is taxable on gains from Malaysian real property whether resident in Malaysia or not.
- From 1 January 2026 the acquirer has an extra option to remit the retention sum; the return and retention sum are due within 60 days of acquisition.
- Stamp duty is separate; check the stamp duty office for current rates.
Costs
- RPGT, individuals, disposal in years 1–3: 30%
- RPGT, individuals, year 4: 20%
- RPGT, individuals, year 5: 15%
Common mistakes
- Assuming the Part I individual rates apply to everyone — companies and non-citizens use other parts of the schedule.