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Capital gains tax in Malaysia 2026
Sell shares, funds or other investments and Malaysia takes nothing — individuals sit outside the capital gains tax introduced for companies in 2024.
Real property is the exception: the real property gains tax (RPGT) runs from 30% for quick flips down to 0% for citizens selling after 5 years (10% for non-citizens).
At a glance
- top rate
- 0% on shares and funds; RPGT up to 30% on property
- entry band
- RPGT 0% for citizens after 5 full years of ownership
- tax year basis
- Per disposal
- filing deadline
- Buyer withholds 3% (7% for non-citizens) and pays it over within 60 days
- residency basis
- RPGT is territorial — Malaysian real property and property-rich companies
- regime flag
- One lifetime exemption on selling a private residence
Rates
Real property gains tax (RPGT) by years of ownership (2026)
| Years held | Citizens / permanent residents | Non-citizens |
|---|---|---|
| Up to 3 | 30% | 30% |
| 4 | 20% | 30% |
| 5 | 15% | 30% |
| 6 or more | 0% | 10% |
Thresholds & allowances
- Per-disposal exemptionThe higher of MYR 10,000 or one tenth of the gain
Whichever is higher, off every chargeable property gain
- Private residenceOne lifetime exemption
One each for husband and wife
- Family transfersExempt
Real property passing between family members carries no RPGT; rollover reliefs cover inheritances and gifts to government or charity
Residency
Residency trigger
Only Malaysian real property and shares in property-rich companies (75%+ of assets in property) are in scope; everything else an individual sells is tax-free.
Non-resident treatment
Non-citizens pay 30% on property sold within 5 years and 10% after; the buyer withholds 7% of the price on account.
Notes
- Foreign capital gains are not taxed for individuals, whether or not remitted.
- Property losses offset property gains and carry forward indefinitely against future RPGT — but never against income tax.
- Frequent, organised buying and selling can be recast as business income and taxed at up to 30% — the pattern of activity decides, not the label.
- A property-rich company means a controlled company whose real property and property-company shares are at least 75% of total tangible assets.
FAQ
Does Malaysia tax capital gains on shares?
Not for individuals — the rate is 0% on shares and funds. Only real property is taxed, at up to 30% depending on how long you held it.
How much is Malaysian property gains tax after 5 years?
0% for citizens and permanent residents, 10% for non-citizens — and every sale gets at least a MYR 10,000 or 10%-of-gain exemption.
Figures: tax year 2026, compiled from public sources. Not tax advice.