Akta Cukai Keuntungan Harta Tanah 1976
Applies to: Federal Act · Official text ↗
- Defines key terms such as 'acquire', 'asset', 'chargeable gain', 'chargeable person' and 'company' (s 2)
- Charges tax on the chargeable gain from the disposal of real property (s 3).
- Sets the tax rate based on the category of disposal as specified in Schedule 5 (s 4).
- Specifies that every person, resident or not, is chargeable with the tax (s 6).
- Exempts, subject to Schedule 3, a gain made by a citizen or permanent resident on disposing of his private residence (s 8)
- Requires persons to make returns within sixty days of disposal (s 13).
- Allows appeals against assessments to the Special Commissioners (s 18).
- Sets deadlines for payment of tax and penalties for non-payment (s 21).
What this law is
The Real Property Gains Tax Act 1976 (Akta Cukai Keuntungan Harta Tanah 1976) is numbered Act 169 in the Laws of Malaysia.
Its long title, as printed in the official text: An Act to provide for the imposition, assessment and collection of a tax on gains derived from the disposal of real property and matters incidental thereto.
Read every section, the amendment history and the official copy on our law library page for this Act.
How the Act is arranged
- Part I — Preliminary (ss 1–2)
- Part II — Imposition of the tax (ss 3–9)
- Part III — Assessment and collection (ss 10–26)
- Part IV — Investigatory and penal (ss 27–42)
- Part V — Administrative and supplemental (ss 43–59)
Part titles are from the official arrangement of sections.
Time limits in this Act
| What | Limit | Section |
|---|---|---|
| Make a return for disposal or acquisition of real property | within sixty days of the date of disposal | s 13(1) |
| Pay tax payable under an assessment on a return | within ninety days from the date of disposal | s 21(1A) |
| Pay tax payable under an assessment (general) | within thirty days after the service of the notice of assessment | s 21(4) |
Offences and penalties
| Offence | Penalty (as written in the Act) | Section |
|---|---|---|
| Failure to make a return or declaration | fine not exceeding five thousand ringgit or imprisonment for a term not exceeding twelve months or both | s 29(1) |
| Wilful evasion of tax | imprisonment for a term not exceeding three years or a fine not exceeding ten thousand ringgit or both, and a special penalty of treble the amount of the tax undercharged | s 31(1) |
Laws cited on this page
| Act 169 | Real Property Gains Tax Act 1976 Akta Cukai Keuntungan Harta Tanah 1976 | PDF · PDF (BM) · Official ↗ |
Each law links to our mirror page: a copy of the official text captured on a known date, its version history, and the official source. Law library →
Key sections
| Provision | What it says, in plain words |
|---|---|
| s 2 | Defines terms used in the Act — for example "acquire" includes acquiring by purchase, grant, exchange, gift or settlement, and "chargeable person" means a person chargeable with the tax. |
| s 3 | States that a tax is charged on the chargeable gain from the disposal of real property. |
| s 4 | Specifies that the tax is charged at the rate set out in Schedule 5 for each category of disposal. |
| s 6 | Declares that every person, whether or not resident in Malaysia, is chargeable with the tax on gains from disposing of real property. |
| s 8 | Subject to Schedule 3, a gain is exempt if it accrues to an individual who is a citizen, or a non-citizen permanent resident, on the disposal of his private residence. |
| s 13 | Requires persons who dispose of or acquire real property to make a return within sixty days of the disposal. |
| s 18 | Allows a person aggrieved by an assessment to appeal to the Special Commissioners. |
| s 21 | Sets the time limits for paying the tax and specifies penalties for late payment. |
| s 29 | Makes it an offence to fail to make a required return or declaration, with fines or imprisonment. |
| s 31 | Penalizes wilful evasion of tax through false statements or omissions, with imprisonment, fines, and special penalties. |
Worked examples
Facts. Ahmad, a Malaysian citizen, sells the house he lives in, in Kuala Lumpur, at a profit.
The law. Subject to Schedule 3, a gain accruing to a citizen on the disposal of his private residence is exempt (s 8).
Outcome. The gain can be exempt if the conditions in Schedule 3 are met — check Schedule 3 in the Act. Both Ahmad and the buyer must still make the return within sixty days of the disposal (s 13(1)).
Facts. Siti, who lives abroad, sells an apartment in Penang that she bought as an investment.
The law. Every person, whether or not resident in Malaysia, is chargeable with the tax on a chargeable gain accruing on the disposal of a chargeable asset (s 6), at the rate in Schedule 5 for the category of disposal (s 4(1)).
Outcome. Siti is chargeable with real property gains tax on any chargeable gain, unless an exemption applies (ss 6, 9).
Facts. Ravi sells a shop lot in Johor and does not make the return within sixty days.
The law. Failing without reasonable excuse to make the return required by s 13(1) is an offence (s 29(1)). If no prosecution is brought, the Director General may instead require a penalty equal to treble the tax payable for that year (s 29(3)).
Outcome. Ravi may be prosecuted and fined up to RM5,000 or jailed up to twelve months or both (s 29(1)); if he is not prosecuted, he may be required to pay the treble penalty instead (s 29(3)).
Examples are simplified illustrations with invented names; real cases turn on their own facts.
Questions & answers
Do I have to pay tax if I sell my own home?
A gain made by a citizen, or a permanent resident, on disposing of his private residence is exempt, subject to the conditions in Schedule 3 (s 8). Other gains are chargeable unless another exemption applies (ss 6, 9).
How long do I have to file a return after selling a property?
You must make a return within sixty days of the date of disposal (s 13(1)). The Director General may allow a further period if you request it in writing (s 13(1)).
What happens if I don't pay the tax on time?
Tax unpaid after thirty days from service of the notice of assessment (or after ninety days from the date of disposal, for an assessment on a return) is increased by ten per cent of the unpaid tax, without further notice (s 21(4)). The Director General may allow payment by instalments (s 21(3)) and may remit the increase for good cause (s 21(4), proviso (b)).
Can I appeal if I disagree with the tax assessment?
Yes, you can appeal to the Special Commissioners in the same manner as an appeal against an income tax assessment (s 18(1)).
What are the penalties for not filing a return?
Failing to make a return is an offence, punishable by a fine not exceeding five thousand ringgit or imprisonment for up to twelve months (s 29(1)). The Director General may also require a penalty of three times the tax payable (s 29(3)).
Does this law apply to foreigners?
Yes, every person, whether or not resident in Malaysia, is chargeable with the tax on gains from disposing of real property (s 6).
All questions & answers → · Ask your own →
Sources
Related
Stamp Act 1949Renting and buying propertyNational Land Code (Revised 2020)