Tax, legal & title
RPGT: rates, retention and how it's calculated
Quick answerSelling at a profit triggers RPGT. Malaysian citizens / PRs: 30% within 3 years, 20% in year 4, 15% in year 5, 0% from year 6. Foreigners: 30% within 5 years, 10% from year 6. At completion the buyer's lawyer retains 3% (citizen/PR sellers) or 7% (foreign sellers) of the price for the tax office; any excess is refunded. Gain = sale price − purchase price − allowable costs (legal fees, stamp duty, agent fees, value-adding renovation).
30-second summary
- Citizens / PRs: ≤3 yrs 30% · yr 4 20% · yr 5 15% · yr 6+ 0%
- Foreigners: ≤5 yrs 30% · yr 6+ 10%
- Retention: Citizens/PRs 3%; foreigners 7% of price
- Filing: Both parties within 60 days of disposal
- Deductible: Legal fees, stamp duty, agent fees, capital renovation
- Exemptions (citizens): Once-in-a-lifetime home exemption, etc.
Rate table (individuals)
| Holding period | Malaysian citizen / PR | Foreigner |
|---|---|---|
| Within 3 years | 30% | 30% |
| Year 4 | 20% | 30% |
| Year 5 | 15% | 30% |
| Year 6 onwards | 0% | 10% |
Worked example
A foreigner buys at RM1.2 million and sells in year 4 for RM1.45 million; allowable costs (purchase stamp duty, legal fees, selling agent fee, etc.) total about RM130,000.
| Amount | |
|---|---|
| Sale price | RM1,450,000 |
| Less: purchase price | RM1,200,000 |
| Less: allowable costs | RM130,000 |
| Chargeable gain | RM120,000 |
| Foreigner, year 4 (30%) | RM36,000 |
| If sold in year 6 (10%) | RM12,000 |
| Malaysian citizen, year 4 (20%) | RM24,000 |
| Citizen, year 6+ | RM0 |
At completion the buyer's lawyer retains RM1.45m × 7% = RM101,500 (foreign seller) for LHDN; the excess is refunded after assessment.
Filing and retention
- Seller and buyer file RPGT forms with LHDN within 60 days of the disposal date (usually the SPA date).
- The buyer's lawyer remits the retention to LHDN within the deadline.
- File even if there's no gain or a loss — that's how you get the retention back.
Exemptions (mainly citizens / PRs)
- A once-in-a-lifetime exemption on a private residence.
- Gifts between spouses, parents and children, and grandparents and grandchildren (subject to conditions).
Rates and exemptions per LHDN's latest rules; foreigners have fewer exemptions — consult a tax adviser.
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Frequently asked questions
What RPGT do foreigners pay?
30% if sold within 5 years, 10% from year 6.
When is RPGT zero for Malaysians?
Malaysian citizens / PRs pay 0% when selling from year 6.
How much does the lawyer retain on sale?
The buyer's lawyer retains 3% (citizen/PR seller) or 7% (foreign seller) of the price for LHDN; the excess is refunded after assessment.
How is the RPGT gain calculated?
Sale price minus purchase price and allowable costs such as legal fees, stamp duty, agent fees and capital renovation.
Do I file RPGT if I sell at a loss?
Yes. File within 60 days even with no gain to recover the retention.