Residential, Commercial or Industrial Property RPGT Rate in Malaysia 2025

What is RPGT?

Real Property Gains Tax (RPGT), in Malay often referred to as CKHT (Cukai Keuntungan Harta Tanah), is a tax imposed on the profit (gain) derived from the disposal of real property in Malaysia. In other words, when someone sells a piece of land or a building (residential, commercial, industrial, vacant land, etc.) and realizes a gain (i.e. selling price > cost plus allowable expenses), RPGT is levied on that gain. The Residential Commercial or Industrial Property RPGT Rate in Malaysia 2025 applies to all property types in this context. The RPGT Rate in Malaysia 2025 will be crucial for property owners to understand.

RPGT is governed under the Real Property Gains Tax Act 1976, and is administered by the Inland Revenue Board (LHDN / IRBM).

With effect from 1 January 2025, Malaysia will adopt a Self-Assessment System (STS RPGT) for RPGT. That means the seller (disposer) must compute the gain, file the RPGT return, and pay the tax within prescribed timelines. There will be no separate assessment notice from LHDN — the filed return is treated as the assessment.

Understanding the RPGT Rate in Malaysia 2025 is essential for navigating the property market effectively.

Because RPGT is a tax on real property disposals, the same basic tax regime (holding period, disposer category, etc.) applies whether the property is residential, commercial, or industrial. There is no separate rate just because a property is residential vs commercial vs industrial; what matters is the holding period and the category of disposer (individual citizen / PR, non-citizen / foreigner, or company).

However, in practice, different types of properties may have different transaction costs, allowable expense profiles, and market dynamics, which will affect the net gain and thus the RPGT amount.

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