# Real Property Gains Tax (RPGT)

What Is It

Real Property Gains Tax (RPGT) or Cukai Keuntungan Harta Tanah (CKHT) is a capital gains tax charged by the Inland Revenue Board (LHDN) on profits made from selling a property or shares in a real property company (RPC) in Malaysia.

Who Is Eligible

  • Individuals (citizens, permanent residents, and foreigners) or companies who sell property at a higher price than the purchase price, resulting in a profit (chargeable gain).
  • Citizens and permanent residents are entitled to a one-time lifetime tax exemption for the disposal of one private residential property.

    • Required Documents

  • For Seller: Form CKHT 1A (Disposal of Real Property) and copy of Sales & Purchase Agreement (SPA).
  • For Buyer: Form CKHT 2A (Acquisition of Real Property) and copy of SPA.
  • For Exemption Claim: Form CKHT 3 (Exemption Application under Section 8 or Schedule 3).
  • Supporting receipts of purchase price, legal fees, stamp duties, and renovation costs.

    • Step-by-Step Procedure

    1. Calculate Profit: Determine the net taxable gain by subtracting the purchase price and allowable expenses (renovation, legal fees) from the selling price. 2. Obtain Forms: Download forms CKHT 1A, CKHT 2A, and CKHT 3 from the LHDN website. 3. Fill & Submit: Both buyer and seller must submit their respective forms to LHDN within 60 days of the sale agreement date. 4. Tax Retention: The buyer's lawyer retains 3% of the purchase price (or 7% for foreigners) and pays it to LHDN as an estimated tax payment. 5. Get Assessment: LHDN issues a notice showing the exact tax payable or refund details.

    Cost & Processing Time

  • Cost: Tax rates are based on the holding period. For citizens: 30% if sold within 3 years; 20% in the 4th year; 15% in the 5th year; 0% from the 6th year onwards.
  • Processing Time: Forms must be filed within 60 days of disposal. Assessments are finalized within 30 days of submission.

    • Where to Apply

  • Online: [MyTax LHDN Portal](https://mytax.hasil.gov.my)
  • In-person: Any Inland Revenue Board of Malaysia (LHDN) branch nationwide.

    • Important Notes

  • If you sell a property at a loss, you do not pay RPGT, but you must still file the CKHT return to report the transaction.