RPGT Exemption
Malaysia 2026 (Complete Guide)

This guide is for general information only and does not constitute tax advice. RPGT legislation changes frequently — verify all rates and thresholds with LHDN or a registered tax agent before filing. Questions? WhatsApp ClickBina →

What is RPGT in Malaysia?

Real Property Gains Tax (RPGT) is a tax on the chargeable gain you make when you sell or dispose of real property in Malaysia. It is governed by the Real Property Gains Tax Act 1976 (Act 169), administered by the Inland Revenue Board of Malaysia (LHDN). RPGT applies to individuals, companies, and partnerships who dispose of chargeable assets — land, houses, condominiums, commercial property — at a gain (i.e. the sale price exceeds the acquisition price plus permitted expenses).

RPGT is distinct from income tax and stamp duty. The key variable is how long you held the property: disposals within the first 5 years attract positive rates; from the 6th year onward, the rate for individual Malaysian citizens drops to 0%.

For RPGT rates generally, see our RPGT Malaysia guide →.

RPGT rates 2026 (verify current rate)

The following rates apply to individual Malaysian citizens and permanent residents. Company and non-citizen rates differ. Always verify current rate with LHDN before filing — rates are set by Parliament and can change.

The 0% rate from Year 6 effectively makes the chargeable gain exempt for most individual citizen/PR sellers who have held their property for more than 5 complete years. No CKHT filing exemption applies — you still need to submit forms even if the rate is 0%.

Once-in-a-lifetime private residence exemption

The most valuable RPGT exemption for most homeowners is the once-in-a-lifetime private residence exemption, codified under Schedule 4, Paragraph 9 of the RPGT Act 1976 (referred to in LHDN materials as the “Section 8 exemption”). This exemption shelters the entire chargeable gain on the sale of your private residence from RPGT — even in Year 1, 2 or 3 when rates are otherwise 30%.

Conditions for the exemption

• The disposer must be a Malaysian citizen or permanent resident.
• The property must be a private residence — defined as a building or part of a building in Malaysia that is owned by the individual and occupied (or certified fit for occupation) as a place of residence.
• The exemption is irrevocable once elected. You can only use it once in your lifetime.
• Election is made via Form CKHT 3, submitted electronically through LHDN’s e-CKHT portal within 60 days of the disposal date.

Practical notes

• If you own two residential properties and sell one, you choose which one to apply the exemption to. Choose the property with the higher chargeable gain, as you only get one lifetime election.
• This exemption works alongside, not instead of, the automatic per-disposal relief (see below).
• A property rented out commercially may not qualify as a “private residence” — consult a tax agent if the property was never owner-occupied.

6th-year-onward 0% rate for individual citizens

If you are a Malaysian citizen or PR individual (not a company) and you sell a property you have held for more than 5 years (i.e. disposal in Year 6 or beyond), the RPGT rate on your chargeable gain is 0%.

This means no tax is payable even if you made a large profit on the sale. However, you are still required to file CKHT forms with LHDN within 60 days — non-filing is an offence. The buyer’s solicitor also retains 3% of the purchase price as a withholding sum and remits it to LHDN; LHDN refunds this after processing if the rate is 0%.

This is often the most practical “exemption” available to long-term property owners, requiring no special election and applying automatically by virtue of the holding period.

Family transfers: no gain no loss (Schedule 2 Para 12)

Transfers of real property between certain close family members are treated as no gain, no loss transactions under Schedule 2, Paragraph 12 of the RPGT Act 1976. The transferor is deemed to have disposed of the property at neither a gain nor a loss, and the transferee acquires it at the transferor’s original acquisition price plus permitted expenses.

Qualifying relationships:

Key consequences of no-gain-no-loss treatment: The new owner (donee) inherits the original acquisition price. When they eventually sell the property to a third party at market value, their chargeable gain will be calculated from the original donor’s acquisition price, not from the date of the family gift. This can result in a larger RPGT liability for the donee than if they had acquired at market value.

For more on transferring property to family members, see our buying property Malaysia guide →.

Automatic 10% or RM10,000 per-disposal relief (Schedule 2 Para 2)

Every disposal of real property by an individual automatically benefits from the Schedule 2, Paragraph 2 relief: the greater of RM10,000 or 10% of the chargeable gain is exempt from each disposal. This is a per-transaction relief that applies regardless of holding period and is not an election — it reduces every individual’s taxable gain automatically.

Example: A citizen sells a property in Year 3 with a chargeable gain of RM60,000. The 30% RPGT rate applies, but 10% of RM60,000 = RM6,000 (which is less than RM10,000), so RM10,000 is deducted first. The taxable gain is RM50,000; RPGT = RM15,000.

Other RPGT exemptions and reliefs

• Inherited property (Schedule 4 Para 3): A disposal of real property inherited by gift from a deceased person is treated as no gain no loss if the disposal is to the beneficiary under a will, intestacy laws, or Islamic inheritance (faraid). The beneficiary takes on the deceased’s acquisition price.
• Compulsory acquisition: Gains from compulsory acquisition of land by a government authority are exempt from RPGT.
• De minimis disposals: Low-value transactions may fall below filing thresholds; confirm with LHDN.
• Unit trust interests: Gains from disposal of interests in unit trusts that invest in real property have specific rules — consult a tax agent.

RPGT exemption comparison table

RPGT self-assessment from 1 January 2025

Effective 1 January 2025, Malaysia’s RPGT system shifted to a self-assessment framework. The disposer is now fully responsible for calculating their own RPGT liability and submitting the relevant CKHT returns via LHDN’s e-CKHT portal within 60 days of the disposal date. LHDN can still audit and impose penalties for incorrect calculations or late filing.

Under self-assessment, the following duties apply to the seller:

• Determine the correct acquisition price, disposal price and permitted expenses.
• Apply any applicable exemptions and reliefs.
• Calculate the chargeable gain and RPGT payable.
• Submit CKHT-1A (disposer) and CKHT-2A (acquirer) forms via e-CKHT within 60 days.
• Pay any RPGT due, net of the 3% withholding sum retained by the buyer’s solicitor.

How to claim RPGT exemptions: e-CKHT and forms

1. Register/log in to e-CKHT at myTax portal (mytax.hasil.gov.my). Both the disposer and acquirer must file separately.
2. Complete CKHT-1A (disposer) with the property details, acquisition price, disposal price, permitted expenses, and the exemption you are claiming.
3. If claiming the once-in-lifetime private residence exemption, also complete and submit Form CKHT 3 — this election is irrevocable.
4. The buyer’s solicitor will remit 3% of the purchase price to LHDN as a retention sum. LHDN refunds any excess after processing.
5. Deadline: 60 days from the disposal date. Late filing attracts a penalty of up to 10% of the tax payable.

Always engage a registered tax agent or conveyancing lawyer to assist, especially for the once-in-lifetime election which cannot be reversed.

Worked example: selling a home in Year 3

In this example, using the once-in-lifetime exemption saves RM45,900 in RPGT. If the property was instead sold in Year 6 or beyond, the rate would be 0% for a citizen anyway — saving the once-in-lifetime election for a future, potentially higher-value property.

Sources & official references

• LHDN — RPGT Exemptions (official)
• Real Property Gains Tax Act 1976 (Act 169) — Schedule 2, Schedule 4
• LHDN RPGT portal / e-CKHT
• LHDN RPGT self-assessment framework, effective 1 January 2025
• Low & Partners — RPGT Exemptions
• ANC Group — RPGT No Gain No Loss & Family Transfer