Introduction
Understanding the Real Property Gains Tax RPGT 2025 Malaysia framework is crucial for anyone involved in property transactions starting January 1, 2025. LHDN has officially transitioned to a Self-Assessment System (STS), meaning the responsibility for calculating tax and filing returns now rests entirely on the taxpayers. This guide outlines the essential procedures for both disposers and acquirers to remain compliant with the Real Property Gains Tax Act 1976.
Major Shift to Self-Assessment System (STS)
The introduction of the Real Property Gains Tax RPGT 2025 Malaysia STS model means that your tax return (Form CKHT 1A/1B) is now deemed a Notice of Assessment the moment it is submitted. Unlike previous years, LHDN will not issue a formal manual notice for every case. Taxpayers must ensure all details regarding the disposal price, acquisition price, and incidental costs are accurate to avoid heavy penalties during future audits.
Acquirer’s Obligations Under Section 21B
In the context of Real Property Gains Tax RPGT 2025 Malaysia, the acquirer plays a pivotal role. Under Section 21B, the acquirer is legally required to withhold a portion of the cash consideration and remit it to LHDN within 60 days of the acquisition date.
- Standard Rate: 3% of the total consideration.
- Special Categories: 5% or 7% depending on the residency status and category of the disposer.
Failure to remit this amount within the 60-day window results in an automatic 10% penalty on the unpaid sum.
Deadlines for Filing and Payment
Timing is everything when dealing with the Real Property Gains Tax RPGT 2025 Malaysia guidelines. Both parties must submit their respective forms (CKHT 1A/1B for disposers and CKHT 2A for acquirers) within 60 days from the date of the disposal agreement.
- Disposer’s Payment: Any tax balance must be settled within 90 days from the date of disposal.
- Late Payment: A 10% penalty is applied to any balance unpaid after the 90-day grace period.
RPGT Rates Overview (Schedule 5)
| Disposal Period | Company / Non-Citizen | Individual (Citizen/PR) |
| Within 3 years | 30% | 30% |
| In the 4th year | 20% | 20% |
| In the 5th year | 15% | 15% |
| After 5th year | 10% | 0% |
Mandatory e-Filing via MyTax Portal
The Real Property Gains Tax RPGT 2025 Malaysia procedure is now fully digital. All CKHT forms must be submitted electronically through the e-CKHT module on the MyTax portal. Manual submissions are no longer accepted. Additionally, taxpayers must keep all supporting documents—such as Sale and Purchase Agreements (SPA), legal fee receipts, and valuation reports—for at least seven (7) years for audit verification.
Amending Returns and Relief Claims
If you discover an error after filing under the Real Property Gains Tax RPGT 2025 Malaysia system, you can submit an Amended Return Form (BNT) within 6 months. However, note that adding tax through an amendment triggers a 10% increase on the additional tax. For errors involving overpayment, taxpayers can apply for relief under Section 19 or 19A of the RPGT Act within five years of the assessment year.
Key Takeaways
- 60-Day Rule: All forms and acquirer withholding tax must be submitted within 60 days.
- Digital Only: e-CKHT via MyTax is mandatory for all transactions in 2025.
- Automatic Penalties: 10% for late submission or late payment (after 90 days for balance).
- 7-Year Records: Keep all receipts and agreements for future LHDN audits.
FAQ: Real Property Gains Tax 2025
Q: Do I need to file CKHT if I am selling at a loss?
A: Yes, even if there is no profit, you must file the Real Property Gains Tax RPGT 2025 Malaysia forms (CKHT 1A and CKHT 3) to inform LHDN of the non-taxable disposal.
Q: What is Form CKHT 3?
A: This is the “Notice of Non-Chargeability” filed by the disposer to declare that the sale is exempt or results in a loss, allowing the acquirer to release the withheld 3%.
Q: Can I claim my private residence as exempt?
A: Yes, once in a lifetime, a Malaysian citizen or PR can claim an exemption on the disposal of one private residence under Schedule 3.
Full PDF Version: Operational Guidelines For Real Property Gains Tax (RPGT)
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