Malaysia’s Real Property Gains Tax (RPGT) significantly regulates property transactions and curbs speculative activities. As we step into 2025, there are key updates to RPGT regulations that property owners, buyers, and investors need to be aware of. Here’s a comprehensive guide to help you understand the changes and comply with the latest requirements.
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What is RPGT in Malaysia?
RPGT is a tax on the profits made from selling real property or shares in real property companies. This tax ensures equitable contributions and discourages short-term speculative investments, making the Malaysian property market more stable.
Key Updates to Real Property Gains Tax in 2025
1. Mandatory Online Submission Effective January 1, 2025, all RPGT return forms must be submitted electronically via the e-CKHT platform on the MyTax portal. This digital transition aims to streamline the filing process and improve compliance.
2. Self-Assessment System Implementation Starting this year, a self-assessment system has been introduced for RPGT filings. Taxpayers are now required to compute their tax liabilities accurately. The submitted returns will be considered assessments made by the Director General of Inland Revenue.
Real Property Gains Tax (RPGT) Rates for 2025
Malaysian Citizens and Permanent Residents:
- Disposal within 1st to 3rd year: 30%
- 4th year: 20%
- 5th year: 15%
- 6th year onwards: 0%
Non-Citizens and Foreigners:
- Disposal within 1st to 5th year: 30%
- 6th year onwards: 10%
Companies:
- Disposal within 1st to 3rd year: 30%
- 4th year: 20%
- 5th year: 15%
- 6th year onwards: 10%
RPGT Exemptions in Malaysia
To ease the burden on taxpayers, the following exemptions are available:
a) Once-in-a-lifetime exemption
Malaysian citizens are eligible for a one-time exemption on gains from the disposal of a private residence.
b) Family Transfers
Property transfers between family members (e.g., spouses, parents and children, grandparents and grandchildren) are exempted from RPGT.
c) Chargeable Gains Waiver
A waiver is available for 10% of chargeable gains or RM10,000 (whichever is higher) per transaction.
How to File RPGT in 2025
Step 1: Prepare Documents
- Sale and Purchase Agreement (SPA)
- CKHT 1A Form for disposal
- Supporting documents for deductions or exemptions
Step 2: Access the e-CKHT Platform
Log in to the MyTax portal (https://mytax.hasil.gov.my/) using your Tax Identification Number (TIN). Navigate to the e-CKHT section and complete the necessary forms.
Step 3: Submit Within 60 Days
Ensure all documents are submitted within 60 days of the property’s disposal. Failure to comply may result in penalties.
Why These RPGT Updates Are Important
The 2025 updates to RPGT reflect Malaysia’s commitment to modernizing its tax system and improving transparency. The shift to digital filing reduces paperwork, while the self-assessment system gives taxpayers greater autonomy and responsibility over their filings.
TL;DR: Key Takeaways for RPGT 2025
Starting January 1, 2025
- Mandatory Online Filing: RPGT filings must now be completed on the MyTax portal via the e-CKHT platform.
- Self-Assessment System: Taxpayers are responsible for calculating their liabilities.
- Exemptions: Malaysian citizens enjoy RPGT exemptions on property disposals after six years.
Stay ahead of the curve by understanding and adhering to the latest RPGT requirements in Malaysia. For further assistance, consult a licensed tax professional or visit the Inland Revenue Board’s official website.
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