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In Malaysia, the act was first introduced in 1976 under Real Property Gains Tax Act 1976 with the purpose to limit property speculation and prevent a potential bubble. RPGT is a tax levied on profits made from the sale of property. RPGT is payable by the seller of any property where a profit has been realised.

 RPGT is based on the rates that were amended and took effect on January 1, 2022.

Example scenario:

• Richard is a Malaysia citizen. Richard bought a condominium at the price of RM500,000 back in May 2018 and sold it in December 2020.
• Richard’s profit from his property disposal is RM300,000. RPGT will be imposed on his gain from the disposal.
• Richard’s RPGT charges will be RM300,000 x 30% (Charges based on number of years Richard owned the property).
• Richard’s RPGT tax is RM90,000.

According to the RPGT Act, certain tax exemptions apply to profits on selling property:

Exemption	Exemption amount	Who qualifies?
		Malaysian citizens	Permanent Residents
Once-in-a-lifetime exemption on any chargeable gain from the disposal of a private residence. The RPGT Act defines a private residence as a building or part of a building owned by an individual or occupied as a place of residence.	100% exemption on the chargeable gain.
Exemption on gains when a property is transferred within the family, either between husband and wife, parent and child, or grandparent and grandchild. Transfer between siblings is excluded.	100% exemption on the chargeable gain.
Exemption of RPGT for the disposal of residential properties from June 1st 2020 to Dec 31st 2021.	RM10,000 or 10% of the chargeable gain, whichever is higher.
Exemption of RPGT for the disposal of low cost residential homes of RM200,000 and below, in the 6th and subsequent years.	100% exemption on the chargeable gain.