Real Property Gains Tax Form (Malaysia)

A Real Property Gains Tax Form in Malaysia records the figures and particulars required for the tax filing it supports.

RPGT is administered by the Inland Revenue Board of Malaysia (LHDN) and returns are filed using the prescribed CKHT forms. The primary forms are: CKHT 1A (Disposer's Return) filed by the vendor; CKHT 1B (Acquirer's Return) filed by the purchaser; and CKHT 2A (withholding notification) also filed by the purchaser to account for the 3% retention. The CKHT forms must be submitted to LHDN within 60 days of the date of disposal (i.e., the date of the SPA or Deed of Assignment).

The RPGT rates applicable from 1 January 2022 for Malaysian citizens and permanent residents are: 30% for disposal within 3 years of acquisition; 20% for disposal in the 4th year; 15% for disposal in the 5th year; and 0% for disposal in the 6th year and beyond. For companies and non-citizens, the rates are 30% for disposal within 5 years and 10% thereafter. Each individual Malaysian citizen and permanent resident is entitled to a once-in-a-lifetime RPGT exemption of RM 10,000 or 10% of the chargeable gain (whichever is greater) under Schedule 4 of the RPGT Act 1976.

The chargeable gain is calculated as the disposal price minus the acquisition price minus allowable expenditure. Allowable expenditure under Section 4 of the RPGT Act 1976 includes: legal costs and stamp duty paid on acquisition; costs of improvements and enhancements to the property; agent's commission on disposal; and certain other incidental costs of disposal and acquisition.

The legal framework governing the Real Property Gains Tax Form (Malaysia) in Malaysia draws on several key statutes and regulatory bodies. Under Malaysian law, the Contracts Act 1950 (Act 136) governs contractual obligations. The Companies Act 2016 (Act 777) regulates corporate entities through the Companies Commission of Malaysia (SSM). The Employment Act 1955 (Act 265) and the Department of Labour govern employment matters. The Personal Data Protection Act 2010 (Act 709) and the Personal Data Protection Department protect personal data. The Inland Revenue Board of Malaysia (LHDN) administers tax obligations. The Industrial Court adjudicates employment disputes under the Industrial Relations Act 1967 (Act 177). Parties executing a Real Property Gains Tax Form (Malaysia) in Malaysia should confirm the document reflects current law, including any amendments enacted since the original drafting date. The National Land Code 1965 (Act 56) sets the foundational requirements.

RPGT forms must be filed in Malaysia for every disposal of a chargeable asset — including land, buildings, and shares in real property companies.

RPGT forms are required when a vendor sells residential or commercial property in Malaysia and realises a gain on the disposal. The disposer must file CKHT 1A within 60 days of the date of the SPA. Even if no gain is realised (i.e., the disposal price is lower than or equal to the acquisition price), RPGT forms must still be filed to establish the nil gain position.

RPGT forms are needed when the purchaser completes a property purchase — the purchaser must file CKHT 1B (Acquirer's Return) and remit 3% of the purchase price to LHDN within 60 days of the disposal date under Section 21B of the RPGT Act 1976, regardless of whether the disposer has a RPGT liability.

RPGT forms are required when shares in a company that derives more than 75% of its value from real property (a real property company or RPC) are transferred. The transfer of RPC shares is treated as a disposal of a chargeable asset under Part II of the RPGT Act 1976.

RPGT forms are needed when property is transferred by gift — including transfers between family members (spouses, parents and children) — as such transfers are disposals for RPGT purposes, though transfers between spouses and between parents and children may qualify for RPGT exemption under Schedule 4 of the Act.

RPGT forms are required when the estate of a deceased person disposes of estate property — the executor or administrator files the RPGT return on behalf of the estate, and the date of acquisition for RPGT purposes is the date of the original acquisition by the deceased.

A complete RPGT computation and declaration for Malaysia must contain the following essential elements.

Disposer details: Full legal name, NRIC or income tax reference number (No. Cukai Pendapatan) of the disposer (vendor). For corporate disposers, the SSM registration number and Cukai Pendapatan company number. The disposer must be registered with LHDN before filing RPGT returns.

Property details: Full address and description of the chargeable asset disposed of, the title reference (Geran, Pajakan, or Hakmilik Strata), the date of acquisition, and the date of disposal. The date of disposal for RPGT purposes is the date of the SPA or Deed of Assignment under which the property is sold.

Acquisition price: The total consideration paid by the disposer to acquire the property — including purchase price, stamp duty, and legal costs on acquisition — as substantiated by the original SPA and LHDN's adjudication records.

Disposal price: The total consideration received by the disposer for the disposal — typically the purchase price under the current SPA, less the agent's commission on disposal.

Allowable expenditure: Improvements and enhancements carried out on the property during the disposer's period of ownership (supported by receipts and invoices), incidental costs of disposal (e.g., agent's commission, legal fees for the current SPA), and any other costs permitted under Section 4 of the RPGT Act 1976.

Chargeable gain computation: Disposal price minus acquisition price minus allowable expenditure equals chargeable gain. The applicable RPGT rate based on the holding period and the disposer's residency status is then applied to the chargeable gain.

Exemptions: Any available RPGT exemptions — including the once-in-a-lifetime individual exemption under Schedule 4 of the RPGT Act 1976, the transfer between spouses exemption, or the 6th year and beyond 0% rate for citizens and PRs.

Section 21B retention: The purchaser's obligation to withhold 3% of the purchase price and remit it to LHDN as a retention against the disposer's RPGT liability, and the disposer's obligation to cooperate in submitting the CKHT forms within 60 days.

Additional compliance elements for a Real Property Gains Tax Form (Malaysia) used in Malaysia include: Under Malaysian law, the Contracts Act 1950 (Act 136) governs contractual obligations. The Companies Act 2016 (Act 777) regulates corporate entities through the Companies Commission of Malaysia (SSM). The Employment Act 1955 (Act 265) and the Department of Labour govern employment matters. The Personal Data Protection Act 2010 (Act 709) and the Personal Data Protection Department protect personal data. The Inland Revenue Board of Malaysia (LHDN) administers tax obligations. The Industrial Court adjudicates employment disputes under the Industrial Relations Act 1967 (Act 177). Forms-legal.com provides this template as a starting point for Malaysia-compliant documentation.