Company RPGT on the full gain, by holding period.
RPGT due
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Chargeable gain
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Net after RPGT
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Why a company pays more RPGT than a person
Real Property Gains Tax is the levy on the profit a seller makes when disposing of real property in Malaysia, and the holding period decides the rate. Where this tool earns its keep is the part many founders miss: a company and an individual are not treated the same. A citizen or permanent resident gets a statutory exemption and, from the sixth year of ownership, a zero percent rate. A company gets neither. There is no personal exemption, and the rate never falls to zero. That single difference can change the after-tax outcome of selling a shop lot, a warehouse, or land held inside an Sdn Bhd by tens of thousands of ringgit, which is exactly why the structure you hold property in deserves thought before you buy, not after you sell.
The four-tier company scale
This calculator applies a four-step holding-period scale to companies. As modelled here, the rate is 30 percent if the property is sold within the first three years, 20 percent in the fourth year, 15 percent in the fifth year, and 10 percent from the sixth year onward. Notice the floor: even after holding for a decade, a company still pays 10 percent on the gain, whereas an individual citizen would pay nothing by then. These are the bands the tool uses, and because RPGT figures are revised in Budget announcements from time to time, confirm the current scale with LHDN, the Inland Revenue Board of Malaysia, before you act on a planned sale.
The chargeable gain itself is straightforward. Take the disposal price, subtract what the company originally paid to acquire the property, then subtract incidental costs such as legal fees, agent commission, and valuation. Whatever remains is taxed in full at the band rate. There is no slice that escapes, no first-tranche relief, nothing held back.
An RM900,000 disposal in year two
Take the default figures. A company sells a unit for RM900,000 that it bought for RM600,000, with RM20,000 of incidental costs, after holding it for two years. The gain is RM280,000. Because the sale falls inside the first three years, the rate this calculator applies is 30 percent, so the RPGT is RM84,000. The gain the company keeps after tax is RM196,000. That last figure is the profit retained after RPGT, not the cash from the sale; the company also gets back its original RM600,000 of capital on top.
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The chart shows the same RM280,000 gain at two holding periods. Selling in year two hands RM84,000 to RPGT. Waiting until the sixth year drops the rate to 10 percent, so the tax falls to RM28,000 and the company keeps RM252,000 of the gain. For a company, patience is the only lever, since the exemption route is closed.
A point on company share disposals
RPGT is not the only gains tax a company faces. Since 1 January 2024 Malaysia has applied a capital gains tax on disposals of unlisted shares by companies and other entities, broadly at 10 percent on the net gain. So when an Sdn Bhd sells shares in another unlisted company rather than the underlying property, a different regime can apply. RPGT itself can also reach shares in a real property company, where the bulk of the firm's assets is land or buildings. If your disposal involves shares rather than the title deed, treat this tool as the real-property answer only and ask a tax agent which charge actually bites.
Who this calculator is for
It suits directors, property investors holding through an Sdn Bhd, and accountants sizing up a disposal before signing the sale and purchase agreement. A common mistake is assuming the holding clock runs from when the building was completed; it runs from the date of acquisition on the instrument, so check the dates on your transfer documents.
Can a company use any RPGT exemption at all?
The once-in-a-lifetime private residence exemption and the higher-of-RM10,000-or-10-percent exemption are written for individuals who are citizens or permanent residents. A company cannot claim either, which is why this tool charges tax on the full gain. Allowable losses on earlier RPGT disposals can, however, be carried forward against later chargeable gains, so keep records of any loss-making sales.
When is the RPGT actually due?
RPGT is reported on disposal, and the acquirer's solicitor normally retains a portion of the price and remits it to LHDN within 60 days of the sale and purchase agreement, with the balance settled on assessment. Build that retention into your cash-flow plan rather than expecting the full sale proceeds on completion day.