Stamp Duty In Malaysia
Stamp Duty is a fee on legal documents such as a Sale and Purchase Agreement or Loan Agreement when you purchase a house.
Stamp Duty is charged under two categories:
Stamp Duty in Malaysia is based on a scale as outlined below:
|First RM100,000 of the Property Price||1%|
|From RM100,001 to RM500,000||2%|
|From RM500,001 to RM1 Million||3%|
|Everything above RM1 Million||4%|
Real Property Gains Tax (RPGT)
In Malaysia, the Real Property Gains Tax (RPGT) is a property-related tax based on the profit gained from selling a property.
RPGT is a tax on profit. That means it is payable by the seller of a property when the resale price is higher than the purchase price.
|Disposal||Citizen / PR||Non-Citizens||Companies|
|Less or Equal to 3 Years||30%||30%||30%|
|Less or Equal to 4 Years||20%||30%||20%|
|Less or Equal to 5 Years||15%||30%||15%|
|6th Year and Beyond||0%||10%||10%|
Real Property Gains Tax is a tax on chargeable gains derived from the disposal of a property. A chargeable gain is a profit when the disposal price is more than the purchase price of the property. RPGT is also applicable in the procurement and disposal of shares in companies where 75% of their tangible assets are in properties, a.k.a. Real Property Companies (RPC).
Taxes are based on the positive net capital gains which is the disposal price less the purchased price, less the miscellaneous charges such as stamp duty, legal fees, refurbishment costs, local taxes etc.
Property tax rates in Malaysia