RPGT Budget 2025 Malaysia — CKHT Rates & Property Tax Changes
A complete summary of Real Property Gains Tax (RPGT/CKHT) rates and any property-related tax changes announced in Malaysia's Budget 2025
Malaysia's Budget 2025 (Belanjawan 2025), tabled on 18 October 2024, maintained the key RPGT framework introduced in recent years. The government continued its policy of zero-RPGT for Malaysian citizens and permanent residents who hold property for more than 5 years, while preserving the existing rate structure for shorter holding periods and for companies and foreign investors. Below is a full breakdown of the current RPGT position for 2025.
RPGT Rates in Effect for 2025
The following rates are in force for disposal of real property in Malaysia in the year of assessment 2025. The rates apply to the chargeable gain (not the full sale price):
Malaysian Citizens & Permanent Residents
| Year 1 (within 12 months of acquisition) | 30% |
| Year 2 | 20% |
| Year 3 | 15% |
| Year 4 | 10% |
| Year 5 | 5% |
| Year 6 and beyond | 0% |
Non-Citizens / Foreign Buyers
| Year 1–5 | 30% |
| Year 6 and beyond | 10% |
Companies (Local & Foreign)
| Year 1–3 | 30% |
| Year 4 | 20% |
| Year 5 | 15% |
| Year 6 and beyond | 10% |
The LexHub RPGT Calculator uses the latest 2025 rates. Enter your purchase price, sale price, dates, and deductible costs to get your instant RPGT estimate.
Calculate Your RPGT →Key Property Tax Highlights — Budget 2025
RPGT Rates Maintained at Zero (After 5 Years) for Citizens
The Budget 2025 confirmed that Malaysian citizens and permanent residents who hold property for more than 5 years continue to pay 0% RPGT on disposal. This zero-rate policy, first introduced under Budget 2020 and re-extended through subsequent budgets, remains the primary incentive for long-term property holding.
Stamp Duty Exemption for First-Time Buyers Extended to 2025
The full stamp duty exemption on the first RM 500,000 of property price for first-time buyers was extended to 31 December 2025. This applies to both MOT stamp duty and loan stamp duty on the first RM 500,000, saving first-time buyers up to RM 8,500 in stamp costs.
MyHome / PR1MA Scheme Continuation
Budget 2025 continued funding for government affordable housing schemes. Properties acquired under PR1MA, RUMAWIP, and similar schemes remain RPGT-exempt in many cases and benefit from reduced stamp duty rates, making them attractive entry points for first-time property buyers.
Property Market Recovery Support
The government announced various initiatives to support property market recovery, including continued financing incentives for first-home buyers and maintaining the RPGT zero-rate for long-term holders to encourage genuine owner-occupier purchasers rather than short-term speculators.
How Chargeable Gain Is Calculated
RPGT is not calculated on the full sale price — it is calculated on the chargeable gain, which is the net profit after deducting all allowable costs:
Worked Example
| Purchase price (Year 1) | RM 400,000 |
| Renovation / enhancement costs | RM 30,000 |
| Legal fees (purchase + sale) | RM 8,000 |
| Agent commission (2%) | RM 10,000 |
| Sale price (Year 3) | RM 550,000 |
| Total deductible costs | RM 448,000 |
| Chargeable Gain | RM 102,000 |
| Less: RM 10,000 annual exemption | − RM 10,000 |
| Net Chargeable Gain | RM 92,000 |
| RPGT @ 15% (Year 3 disposal, citizen) | RM 13,800 |
Frequently Asked Questions
Did Budget 2025 change any RPGT rates?▼
Budget 2025 maintained the existing RPGT rate structure without introducing new rates. The zero-RPGT rate for citizens holding property for more than 5 years remains in place, as does the 30% rate for short-term disposals within the first year. The continuity of rates provides stability and predictability for property investors and homeowners.
Is there a 6th-year RPGT exemption for companies in Malaysia?▼
No. Companies do not benefit from the zero-RPGT rate after 5 years. For companies (both local and foreign-incorporated), RPGT remains at 10% on chargeable gains from property disposals even after more than 5 years of ownership. Only Malaysian individuals (citizens and PRs) enjoy the 0% rate after 5 years.
How does the 3% RPGT retention work for the buyer?▼
When purchasing a property in Malaysia, the buyer is legally required to retain 3% of the purchase price (if the seller is a Malaysian citizen or PR) or 7% (if the seller is a non-citizen). This amount must be remitted to LHDN within 60 days of disposal via CKHT Form 2A. Failure to retain and remit makes the buyer personally liable for the tax.
What is the RPGT holding period — from date of SPA or date of MOT?▼
The holding period for RPGT purposes is calculated from the date of acquisition — which is the date the Sale and Purchase Agreement (SPA) is signed, not the date the Memorandum of Transfer (MOT) is registered at the land office. This is a common point of confusion. If you signed your SPA on 1 March 2020, your Year 6 (0% rate for citizens) begins on 1 March 2025.
Can renovation costs be deducted from RPGT?▼
Yes, but only capital enhancement expenditure — costs that permanently improve the property and increase its value. This includes extension works, major renovations, adding a room, or installing permanent fixtures. Routine repairs and maintenance (painting, fixing a leaking roof) are not deductible for RPGT purposes. Always keep receipts and invoices for all renovation work.
Need Professional Help?
Get professional assistance from
Amirul Shahidda & Co.
32M, Jalan Memanda 7, Taman Dato Ahmad Razali, 68000 Ampang Jaya, Selangor