Real Property Gains Tax (“RPGT”) is administered by Inland Revenue Board of Malaysia (“IRBM”) under the Real Property Gains Tax Act 1976 (“RPGTA 1976”). It is a property related tax that is chargeable on the gains arising of profit gained from disposal of a real estate property.

There is a chargeable gain if the disposal price exceeds the acquisition price. To avoid confusion, this simply means when the resale price is higher than the purchase price.

However, it shall be noted that the Malaysia government provides a tax relief in which the disposal price is deemed equal to acquisition price, or that when an individual suffers a loss from the property sold.

Apart from Malaysian citizens, RPGT applies to foreigners and companies whenever they realise a profit gain from the disposal.

About the Author

Chai Hui Wen
Associate
Real Estate
Halim Hong & Quek
hwchai@hhq.com.my

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