• Basis of Taxation

• Rates of Tax

• RPGT Calculation Example

• Disposer's Responsibilities

• Acquirer's Responsibilities

1.0 Basis of Taxation

The chargeable gains arising from the disposal of any land situated in Malaysia or any interest, option or other right in or over such land or the disposal of shares in a 'real property company' is subject to Real Property Gains Tax.

2.0 Rates of Tax

Category of Disposal	Company (%)	Individuals & Other Person  (%)
Disposal within 2 years	30	30
Disposal in the 3rd year	20	20
Disposal in the 4th year	15	15
Disposal in the 5th year	5	5
Disposal in the 6th and subsequent years	5	Nil

The above rates apply for disposals on or after 27 October 1995. 
An individual who is not a citizen and not a permanent resident is subject to the following rates:

Category of Disposal	Rate of Tax (%)
Disposal within 5 years after the date of acquisition of the chargeable asset	30
Disposal in the 6th and subsequent years after the date of acquisition of the chargeable asset	5
These rates apply for disposals on or after 17 October 1997

 

3.0 Example to illustrate how Real Property Gains Tax is calculated

Disposal on 10.11.95		300,000
Less: Renovations	20,000
Legal Fees	3,000	23,000	277,000
Acquisition on 14.04.92		200,000
Add: Stamp duty paid	3,000
Legal Fees	2,500	5,500	205,500
			71,500
Less: Paragraph 2, Schedule 4 (10%)			7,150
Chargeable Gain			64,350
Tax on RM 64,350 @ 15% = RM 9,652.50