Personal Finance Term
RPGT
Real Property Gains Tax
A tax on the profit you make when selling property or shares in a property-holding company in Malaysia. The rate depends on how long you held the property before selling.
RPGT is charged on the chargeable gain — broadly the disposal price minus the purchase price and allowable costs such as legal fees, agent commission, and renovation. It applies on a sliding scale by holding period: the rate is highest for properties sold within the first few years and falls the longer you hold, which discourages short-term flipping. Rates differ for Malaysian citizens, permanent residents, foreigners, and companies, so confirm the band that applies to you.
Some disposals qualify for exemptions or relief — most notably the once-in-a-lifetime exemption on the sale of a private residence for individual Malaysian citizens and PRs, and transfers between close family members. The buyer's lawyer is required to retain a portion of the purchase price and remit it to LHDN against the seller's RPGT, so the tax is collected at the point of sale. Keep all purchase, improvement, and disposal documents, as they reduce your taxable gain.