For example, if one bought a double-storey terrace link house in 2007 at a value of RM500,000 and sold the property in 2017 at the value of RM850,000, gaining RM350,000 from the disposal of the property. The RPGT is to be calculated for RM350,000.
The current effective RPGT rates are as follow:
| Date of Disposal | Companies | Individual (Citizen & Permanent Resident) | Individual (Non-Citizen) |
| Within 3 years from the date of acquisition | 30% | 30% | 30% |
| In the 4th year | 20% | 20% | 30% |
| In the 5th year | 15% | 15% | 30% |
| In the 6th year and subsequent year | 5% | 0% | 5% |
Refer to this LINK for the RPGT Calculator.
Frequently asked questions that may be relevant in understanding the concept of RPGT and how it applies to the property sellers:
Frequently asked questions that may be relevant in understanding the concept of RPGT and how it applies to the property sellers:
When do I have to pay RPGT?
As
prescribed by law, the purchaser's solicitors are required to retain 3% of the
purchase price from the deposit and remit the same to the Inland Revenue Board
within sixty (60) days from the date of the sale and purchase agreement to meet
the RPGT payable.
In
instances where the consent of the State Authority is required to sell the
property to a purchaser and/or charge the property to a financial institution,
or a court order for sale is required to dispose of the property, remittance of
the 3% of the purchase price may be deferred until such consent or court order
for sale is obtained.
What is the consequence of late payment?
Any
payment after 60 days may attract a penalty payable by the seller. The penalty
is 10% of the amount payable as RPGT.
Am I required to do the documentation on my
own?
The
seller may opt to file the necessary forms with the Inland Revenue Board
individually or seek assistance from the solicitors at a fee prescribed by the
Solicitors Remuneration Order 2006.
What if I sell the property at a loss? Am I
still required to pay RPGT?
RPGT
is only chargeable if there is a profit gained from the disposal of the
property. As such, if the disposal price is lower than the acquisition price,
there is no profit gained and therefore no RPGT is payable.
Likewise,
if the disposal price is equal to the acquisition price, there is neither a
chargeable gain nor an allowable loss. As such, no RPGT is payable.
Am I entitled to any deductions?
The
RPGT Act 1976 allows certain incidental costs of the acquisition of the
property and disposal of the property to be taken into account, such as legal
fees for the acquisition and disposal of the property and estate agency fees.
Am I entitled to apply for exemption? Does
it matter whether it is residential or commercial property?
Every
disposer is entitled to a once in a lifetime exemption. However, this exemption
is only applicable for the disposal of a "private residence". The
RPGT Act defines a private residence as a building or part of a building in
Malaysia owned by an individual and occupied or certified fit for occupation as
a place of residence. As such, it does not apply to commercial property.
In
order to apply for an exemption, the applicant must show that:
- the private residence is owned and occupied by an individual; and
- the certificate of fitness for occupation or the Certificate of Completion & Compliance has been issued for that private residence.
It
must be noted this exemption only applies to individuals. It does not apply if
the private residence is owned by a company. A Permanent Resident in Malaysia
is also entitled to apply for this exemption.
Am I subject to RPGT if I'm disposing of a
property held under the estate of the deceased to a purchaser?
In
this instance, the date on which the Inland Revenue Board will take into
account to determine the acquisition date is the date of death of the deceased.
In other words, there is RPGT payable if the disposal of the property is made
within 5 years from the date of death of the deceased, even though the deceased
has owned the property for more than 5 years during his lifetime.
Am I required to pay RPGT if it is a
transfer between family members?
The
law provides for 100% exemption from having to pay RPGT in the case of transfer
of property between family members by way of love and affection in the
following instances:
- transfer between husband and wife;
- transfer between parent and child; and
- transfer between grandparent and grandchild.
In
these instances, the transferor is deemed to have received no gain and suffered
no loss and the transferee is deemed to have acquired the property at an
acquisition price equal to the acquisition price paid by the transferor
together with any permitted expenses incurred by the transferor.
Apart
from the above transfers, any forms of transfer between family members are not
entitled to apply for exemption, such as transfer between siblings.
