Taxes on Acquisition & Transfer of Real Estate in Malaysia

Stamp Duty & Legal Costs
The stamp duty payable by purchasers of property is based on market value at the following rates:
- 1% for first RM100,000
- 2% for next RM400,000
- 3% for the remainder

Legal fees for sales and purchases and charges for completing any transaction (subject to a minimum of RM200) are fixed at rates based on market value:
- 1% for the first RM100,000
- 0.5% for the next RM4,900,000
- 0.25% for remainder

Real Property Gain Tax
Real Property Gains Tax (RPGT) is charged on gains arising from the disposal of real property which is defined as any land situated in Malaysia and any interest, option or other right in or over such land. RPGT is also charged on the disposal of shares in a real property company (RPC). A RPC is a controlled company holding real property or shares in another RPC of which the defined value is not less than 75% of the value of the company’s total tangible assets.

The following are the rates of RPGT: -

Disposal by a company
- 30% for disposal within 2 years after date of acquisition
- 20% for disposal in the 3rd years after date of acquisition
- 15% for disposal in the 4th years after date of acquisition
- 5% for disposal in the 5th years after date of acquisition or thereafter

Disposal by persons other than companies
- 30% for disposal within 2 years after date of acquisition
- 20% for disposal in the 3rd years after date of acquisition
- 15% for disposal in the 4th years after date of acquisition
- 5% for disposal in the 5th years after date of acquisition
- 0% for disposal in the 6th years after date of acquisition or thereafter

Disposal by an individual who is not a citizen or permanent resident
If the date of disposal is from 18 Oct 1980 to 23 Oct 1986 (for assets acquired after 17 Oct 1980) the rate of RPGT is 40%.

If the date of disposal is from 24 Oct 1986 to 26 Oct 1995, the rate of RPGT is same rates as disposal by persons other has companies.

If the date of disposal is from 27 Oct 1995 to 16 Oct 1997, the rate of RPGT is 30%.

If the date of disposal is from 17 Oct 1997 onwards, the rate is 30% for disposal within 5 years after the date of acquisition and 5% for disposal in the 6th year after the date of acquisition or thereafter.