Malaysia Real Property Gains Tax (RPGT) Calculation
First, please refer to this page for Malaysia RPGT details & rates.
To calculate the tax, here is a simple example;
A property bought in 2010 for RM100,000 is sold on 1st Jan 2013 at RM200,000. RM100,000 of profit is made from the transaction – those gains are thus subjected to 10% RPGT as it was sold within three years from the date of purchase.
Furthermore, as the disposable price is equal to the acquisition price, a waiver of RM10,000 is in effect. The tax is calculated as such:
RM100,000 (property gains) – RM10,000 (waiver) = RM90,000 (taxable gains)
RM90,000 x 10% (RPGT rate) = RM9,000 (RPGT chargeable)
This tax is exempted when the property in question is given as a gift between parent and child, husband and wife and grandparent and grandchild.
RPGT is payable only after the property has been sold. Typically, a 60 day window is provided before payment is due.
Your lawyer or tax agent would be able to help you submit the relevant forms and due payment to the Inland Revenue so be sure to ask and remind them.