Written by Fazrina Fezili
If you are selling a property or certain shares in Malaysia, the Real Property Gains Tax (RPGT), also known as CKHT, may apply to the gain from that disposal. HASiL says RPGT applies to gains from the disposal of chargeable assets situated in Malaysia, and both residents and non-residents can be affected.
Real Property Gains Tax (RPGT), also known as Cukai Keuntungan Harta Tanah (CKHT), is a tax imposed on gains arising from the disposal of real property or shares in a real property company.
In simple terms, if you sell a property at a higher price than what you originally paid, the profit may be subject to RPGT.
RPGT applies to:
Both Malaysian citizens and non-citizens may be subject to RPGT depending on the circumstances of the disposal.
The key deadline is 60 days from the date of disposal. HASiL states that the disposer must submit the relevant CKHT form within 60 days after the asset disposal date. For disposal cases, the form is generally CKHT 1A for real property or CKHT 1B for shares.
The tricky part is knowing when the 60 days starts. HASiL explains that the disposal date is the date of agreement if there is a written agreement, or the date of completion if there is no written agreement. If there is no written agreement, completion means the earlier of the date ownership is transferred or the date the full consideration is received.
For property transactions, the relevant forms are typically:
Failing to submit the required form within the prescribed period may result in penalties imposed by the Inland Revenue Board of Malaysia (LHDN).
If you fail to submit the completed CKHT 1A or CKHT 1B within 60 days, HASiL says a penalty can be charged of up to three times the amount of tax charged. The same penalty exposure also applies if the form is not submitted after an allowed extension, or if the disposer fails to declare a chargeable disposal.
If the return is incorrect or incomplete, HASiL says the Director General may impose a penalty equal to the amount of tax underdeclared, up to a maximum of 100%. In other words, a late filing problem and an incorrect filing problem can both become expensive very quickly.
For the buyer or acquirer, the responsibility is serious too. If the acquirer fails to retain and pay the required amount within 60 days after the disposal date, HASiL says a 10% penalty on the unpaid amount may be imposed, and civil legal action may also be taken for the outstanding tax.
For current filings, HASiL says that from 1 January 2025, CKHT submissions must be made online through the e-CKHT Portal on MyTax. Paper CKHT forms are no longer accepted, and if they are not resubmitted through e-CKHT, they are treated as a failure to submit the return.
That means if you are dealing with a 2025 disposal or a previous-year disposal submitted after this change, the safest move is to file through MyTax, not paper.
| Event | Date | Explanation |
|---|---|---|
| Sale and Purchase Agreement (SPA) Signed | 1 March 2026 | The disposal date is generally based on the SPA date for most property transactions. |
| RPGT Filing Deadline | 30 April 2026 | The CKHT return should generally be submitted within 60 days from the disposal date. |
| Late Submission | After 30 April 2026 | If the CKHT return is submitted after the deadline, LHDN may treat the filing as late. |
| Potential Consequences | N/A | Late filing may result in penalties, additional compliance requirements, or further action by LHDN depending on the circumstances. |
In this situation, LHDN may consider the filing late and impose penalties according to the RPGT provisions.
The longer the delay, the more complicated the matter may become, especially if tax remains unpaid.
Late filing is not the only issue that can trigger penalties.
If a taxpayer submits an incorrect return, understates gains, or omits important information, LHDN may impose additional penalties.
The penalty can be as high as 100% of the tax undercharged, depending on the nature and severity of the error.
This is why property sellers should ensure that all acquisition costs, disposal expenses, exemptions, and supporting documents are properly declared.
Many people assume RPGT obligations only apply to the seller.
However, buyers also have responsibilities under RPGT legislation.
The buyer (acquirer) is generally required to:
If the buyer fails to comply with these obligations, a penalty may be imposed on the unpaid amount.
No. Effective from 1 January 2025, RPGT forms must be submitted electronically through the e-CKHT system via MyTax.
Paper submissions are no longer accepted and may be treated as a failure to file if they are not resubmitted through the online platform.
Property owners should therefore ensure they have access to the necessary online filing facilities or engage a solicitor or tax professional to assist with the submission.
If you have already missed the 60-day deadline, do not ignore the issue. You should submit the required CKHT form through e-CKHT as soon as possible and ensure all information provided is complete and accurate.
While penalties may still apply, addressing the matter promptly is generally preferable to allowing the delay to continue.
If necessary, seek professional advice from your solicitor, tax agent, or accountant regarding the next steps.
The main forms mentioned by HASiL are:
If the disposal is not subject to RPGT or is exempt, HASiL states that the disposer may use CKHT 3. After processing, non-taxable cases may receive a Certificate of Non Chargeability, known as CKHT 5A.
The RPGT return must generally be submitted within 60 days from the disposal date.
LHDN may impose a penalty of up to three times the amount of tax charged, depending on the circumstances of the case.
The RPGT return must be submitted within 60 days from the disposal date. The final tax payable may depend on the assessment issued by LHDN, and late payment may result in additional penalties.
In most property transactions, the disposal date is generally the date stated in the Sale and Purchase Agreement (SPA). Certain transactions may have different rules depending on legal or regulatory requirements.
No. RPGT forms must be submitted electronically through e-CKHT via MyTax.
Property sellers generally submit Form CKHT 1A.
Buyers are generally required to submit Form CKHT 2A.
You may still need to submit the relevant CKHT form even if no RPGT is payable or the transaction qualifies for an exemption.
Taxpayers may communicate with LHDN regarding assessments or penalties. Any review or remission depends on the circumstances and supporting documents provided.
Yes. Many property owners appoint solicitors or tax agents to handle RPGT compliance and submissions.
The Malaysia RPGT filing deadline is one of the most important compliance requirements for property sellers. In most cases, you have 60 days from the disposal date to submit the required RPGT forms.
Missing the deadline can result in significant penalties, while incorrect filings may trigger additional assessments and compliance actions.
Whether you are selling your first home, disposing of an investment property, or transferring shares in a real property company, understanding your RPGT obligations can help you avoid unnecessary costs and ensure a smoother transaction.
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