Updates on Real Property Gain Tax (RPGT) 2022

One of the highlights of the Budget 2022, proposed by Tengku Datuk Seri Zafrul Abdul Aziz, our Minister of Finance, is that the disposal of real property by individual citizens and permanent residents (Part I as below) starting from the Sixth (6) years and above will be removed.

Section 30 of the Finance Bill 2021 [1] has also proposed to differ the retention sum payable by the disposer company to Five (5) per cent of the total value of the consideration, in relation to the disposal within a period of Three (3) years after the acquisition date of the chargeable asset.

The RPGT rates as per Schedule 5 of the Real Property Gains Tax Act 1976 (“RPGT Act”) as follows with effect from 1 January 2022:


Other than Part II and Part III

[eg: individual, partnership, executor of the estate of a deceased person who is a citizen or a permanent resident]

Company incorporated in Malaysia or trustee of a trust
[eg: company, co-operative, association, society and organisation]
Individual who is not a citizen and not a permanent resident, or an executor of the estate of a deceased person who is not citizen and not a permanent resident, or a company not incorporated in Malaysia
Disposal within 3 years after the date of acquisition 30% 30% 30%
Disposal in the 4th year after the date of acquisition 20% 20% 30%
Disposal in the 5th year after the date of acquisition 15% 15% 30%
Disposal in the 6th year after the date of acquisition 0% 10% 10%


With the recent implementation coming from the rationale of the Budget 2022 to not impose RPGT for the disposal of property by individual citizens and permanent residents, clearly is to boost the transaction in property sector in view that our country is in the economy recovery state post COVID-19 lockdown.

[1] https://www.parlimen.gov.my/bills-dewan-rakyat.html?uweb=dr&lang=en

If you have any questions or require any additional information, please contact our lawyer that you usually deal with.

This article is written by
Liew Chen Siang
Partners, Low & Partners
Anastasia Lim Yee Zing
Senior Associate, Low & Partners
Share this article

Related Articles  

Whether The Special Holiday in State Level is Compulsory

Jan 12, 2023  
Entitlement Holiday by An Employee the National Day; the Birthday of the Yang di-Pertuan Agong; the Birthday of the Ruler of the State or Yang-di-Pertua Negeri or Federal Territory in which the employee wholly or...

延长租赁契约 (Q&A)

Jan 11, 2023  
什么是租赁产权? 租赁产权是指该产业亦或者房屋建于政府土地之上并在取得...

The Way to Reduce CKHT

Jan 11, 2023  
Real Property Gain Tax, Any Discount on It? Real Property Gain Tax (“RPGT”) a tax levied by the Inland Revenue Board (IRB) on chargeable gains derived from the disposal of real property. As a vendor...


Jan 11, 2023  
What is a POT? It basically is a process of perfecting or registering the separate title to a property i.e. the duly issued Individual or Strata Title by the relevant authority under the name of...

Questions? We're here to help

Send Us Inquiries/ Message/ Feedback :