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RPGT Notes

This document summarizes Malaysia's Real Property Gains Tax (RPGT) rates and exemptions for 2023. It also outlines Stamp Duty rates and exemptions on property transfers and loan agreements. The key points are: 1) RPGT rates range from 10-30% depending on how long a property is held, with lower rates for longer holding periods. Several exemptions apply including a one-time exemption for Malaysian citizens and permanent residents. 2) Stamp Duty on property transfers is 1-4% of the purchase price/market value depending on the price bracket. Loan agreement Stamp Duty is 0.5% of the loan amount. 3) Exemptions from Stamp Duty include a 50%

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41 views

RPGT Notes

This document summarizes Malaysia's Real Property Gains Tax (RPGT) rates and exemptions for 2023. It also outlines Stamp Duty rates and exemptions on property transfers and loan agreements. The key points are: 1) RPGT rates range from 10-30% depending on how long a property is held, with lower rates for longer holding periods. Several exemptions apply including a one-time exemption for Malaysian citizens and permanent residents. 2) Stamp Duty on property transfers is 1-4% of the purchase price/market value depending on the price bracket. Loan agreement Stamp Duty is 0.5% of the loan amount. 3) Exemptions from Stamp Duty include a 50%

Uploaded by

Nur Fatin Rosle
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© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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MALAYSIA 2023

REAL PROPERTY GAINS TAX (RPGT)

• Real Property Gains Tax (RPGT) is a form of Capital Gains Tax that homeowners and
businesses have to pay when selling or disposing of their property in Malaysia.
• RPGT is calculated on the profit gained from the disposal of the property.

RPGT RATE
DISPOSAL COMPANIES INDIVIDUAL (CITIZEN) INDIVIDUAL (NON-
CITIZEN)
0-3 years 30% 30% 30%
4 years 20% 20% 30%
5 years 15% 15% 30%
6+ years 10% 5% 10%

EXEMPTION
Once-in-a-lifetime • 100% exemption
• Individual
• Malaysian citizen
• Permanent resident
• Subject to application
• Residential property and occupied or
certified fit for occupation.

Transfer by way of love and affection • 100% exemption


between: • Individual
(a) Husband and wife: • Malaysian citizen
(b) Parent and child; and • Permanent resident
(c) Grandparent and grandchild. • Residential property

Ownership of the property more than 5 years • 100% exemption


and above (executed from 1st January 2022) • Individual
• Malaysian citizen
• Permanent resident
• Residential property

Exemption of RPGT for the disposal of • Property value RM 200,000.00 and


residential homes of RM200,000 and below below
• Property over 5 years
• Malaysian citizen
• Permanent resident
• Residential property

Any chargeable gain from the disposal of a • RM 10,000.00 or 10% of the taxable
private residence. The RPGT Act defines a gain (whichever is higher)
private residence as a building or part of a • Malaysian citizen
building owned by an individual or occupied • Permanent resident
as a place of residence • Residential property
STAMP DUTY
Stamp duty is chargeable on instruments of transfer and loan agreement. The chargeable rates
on the instrument of transfer and loan agreement vary according to their transacted values.
STAMP DUTY ON INSTRUMENT OF TRANSFER

Purchase Price/ Market Value (whichever is Rate


higher)
First RM 100,000.00 1%
Next RM400,000.00 2%

Next RM 500,000.00 3%
*In excess of RM 1,000,000.00 4%

Example:-
i) Purchase Price/Market Value : RM400,000.00
RM100,000.00 X 1% = RM1,000.00
RM300,000.00 X 2% = RM6,000.00
Total Stamp Duty = RM7,000.00

ii) Purchase Price/Market Value : RM800,000.00


RM100,000.00 X 1% = RM1,000.00
RM400,000.00 X 2% = RM8,000.00
RM300,000.00 X 3% = RM9,000.00
Total Stamp Duty = RM18,000.00

STAMP DUTY ON INSTRUMENT FOR LOAN OR FACILITY AGREEMENT


Rate
0.5% of Loan Amount

Example:-
Loan/Facility amounts : RM400,000.00
Total Stamp Duty = RM400,000.00 X 0.5% = RM2,000.00

STAMP DUTY EXEMPTION AND REMISSION

1) EXEMPTION ON INSTRUMENT OF TRANSFER


EXEMPTION
Purchase Price/ Value of Conditions Amount Remitted
Property
Any value a) Malaysian citizen 50% Exemption
b) Transfer between parent & child
and vice versa.
c) Residential property

Any value a) Malaysian citizen 100% Exemption


b) Transfer between husband &
wife and vice versa.
c) Residential property

Below RM500,000.00 a) Malaysian citizen 100% Exemption


b) First Time Home Buyer
c) The Individual has never owned
any residential property
including one which is obtained
by inheritance or gift, whether
held individually or jointly
d) Residential property
e) For Sale and Purchase
Agreement executed from 1st
January 2021 and not later than
31st December 2025

2) EXEMPTION ON LOAN/ FINANCING INSTRUMENT

Stamp duty exemption on the loan or financing instrument for purchase of residential house:
EXEMPTION
Purchase Price/ Value of Conditions Rate Exemption
Property
Below RM500,000.00 a) Malaysian citizen 100% Exemption
b) First time home buyer
c) The Individual has never
owned any residential
property including one
which is obtained by
inheritance or gift,
whether held
individually or jointly
d) Residential property
e) Sale and Purchase
Agreement executed
from 1 January 2021
st

and not later than 31st


December 2025

Restructuring or a) The original loan/ 100% Exemption


rescheduling of loan/ financing agreement has
financing agreement been duly stamped
b) The restructuring or
rescheduling of loan/
financing agreement
does not contain the
element of additional
value to the original
amount of loan/
financing.
c) Instruments executed
from 1st January 2022
until 31st December
2022

The information contained herein is of a general nature and is not intended to address the
circumstances of any particular individual or entity. Although we endeavor to provide accurate and
timely information, there can be no guarantee that such information is accurate as of the date it is
received or that it will continue to be accurate in the future. No one should act on such information
without appropriate legal or professional advice.

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