1. What is Real Property Gain Tax (RPGT)?

RPGT is a tax chargeable on the profit gained from the disposal of a property and is payable to the Inland Revenue Board. The RPGT rates are as follows:-

Disposal PeriodRPGT Rates
CompaniesIndividual (Citizen / PR)Individual (Non-Citizen)
For Disposals Within 3 years30%30%30%
For Disposals in the 4th years20%20%30%
For Disposals in the 5th years15%15%30%
For Disposals in the 6th and subsequent years5%0%5%

2. 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.

3. I am a company selling a property after 5 years, am I subject to RPGT?

Yes. According to the RPGT Act, there would be a minimal amount of 5% chargeable on the company when it disposes a property after 5 years.

4. I am an individual selling a commercial property, am I subject to GST?

Under the law, when an individual would be subject to GST if:

  1. He owns more than 3 commercial properties; or
  2. He is selling a commercial land of more than 2 acres; or
  3. He is selling a commercial property for more than 2 million.

AND the total selling price exceeds RM500,000.00

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