Real Property Gains Tax 2013

RPGT rates

To further curb speculative activities in the real property market, it is proposed that RPGT rates be reviewed as follows:

Disposal Period Individuals (Citizens & Permanent Residents) Individuals (Non Citizens) Companies
Within 2 years 15% 15% 15%
In the 3rd to 5th year 10% 10% 10%
In the 6th year onwards 0% 0% 0%

The RPGT rates increase is applicable to disposal of property taking place on or after 1 January 2013


Real property owners who are not profit motivated and not involved in speculation are eligible for RPGT exemptions as follows:

  1. RPGT exemption on gains from the disposal of one residential property once in a life time to individuals (citizens and permanent residents);
  2. RPGT exemption up to RM10,000 or 10% of the net gains, whichever is higher, from the disposal of  real property by individuals (citizens, permanent residents and non-citizens); and
  3. RPGT exemption on gains from disposal of real property between husband and wife, parents and  children, grandparents and grandchildren.


RPGT calculation on disposal of property

In addition, RPGT is only imposed on net gains after deducting all costs involved such as the purchase price, renovation cost, legal fees and stamp duty.

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