Real Property Gains Tax Act 1976 (Act 169) & Selected Orders [As at 20th April 2025]

The Real Property Gains Tax Act 1976 (Act 169) is a Malaysian law that imposes a tax on gains derived from the disposal of real property, which includes land, buildings, and other immovable property. The tax is applicable to both individuals and companies, and it is calculated based on the gain made on the disposal of the property.

The Act also includes various provisions and regulations to ensure proper administration and enforcement of the tax. Some of the important orders made under the Act are:

1. Real Property Gains Tax (Rate of Tax) Order 2019 - This order prescribes the rates of tax for the disposal of real property. The tax rate varies depending on the duration of ownership and ranges from 0% to 30%.

2. Real Property Gains Tax (Exemption) Order 2014 - This order provides for exemptions from the tax for certain types of disposals, such as disposals of property between spouses, disposals of low-cost houses, and disposals by way of gifts.

3. Real Property Gains Tax (Valuation of Real Property) Rules 1996 - These rules provide for the valuation of real property for the purpose of determining the gain made on disposal. The valuation is based on the market value of the property at the time of disposal.

4. Real Property Gains Tax (Compounding of Offences) Rules 1990 - These rules provide for the compounding of certain offences under the Act. Offences may be compounded by paying a sum of money instead of facing legal action.

5. Real Property Gains Tax (Prescribed Person) Order 1985 - This order designates certain persons as prescribed persons for the purpose of the Act. Prescribed persons include solicitors, accountants, and land surveyors who are authorized to act on behalf of taxpayers in relation to the tax.

Overall, the Real Property Gains Tax Act 1976 and its selected orders provide the legal framework for the taxation of gains from the disposal of real property in Malaysia. The Act and its associated regulations ensure that the tax is administered fairly and efficiently while providing exemptions and relief for certain types of disposals.

Real Property Gains Tax Act 1976 Contains:

Real Property Gains Tax Act 1976 (Act 169)
Real Property Gains Tax (Exemption) (No. 6) Order 2000
Real Property Gains Tax (Exemption) (No. 3) Order 2003
Real Property Gains Tax (Exemption) (No. 4) Order 2003
Real Property Gains Tax (Exemption) Order 2013
Real Property Gains Tax (Exemption) (No. 2) Order 2013
Real Property Gains Tax (Exemption) Order 2014
Real Property Gains Tax (Exemption) Order 2015
Real Property Gains Tax (Exemption) Order 2018
Real Property Gains Tax (Exemption) (No. 3) Order 2018
Real Property Gains Tax (Exemption) Order 2020 

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MDC Publishers Sdn Bhd Version :

REAL PROPERTY GAINS TAX ACT 1976 (ACT 169)

[AS AT 1ST JANUARY 2025]

An Act to provide for the imposition, assessment, collection, and enforcement of a tax on gains derived from the disposal of real property and shares in real property companies.

Printed: April 2025

Publisher: MDC Publishers Sdn Bhd

Detailed Contents of Real Property Gains Tax Act 1976 (Act 169)

Part I: Preliminary

Defines key terms used in the Act, such as "real property," "disposal," "chargeable person," and "acquisition."
Includes provisions on the short title and commencement.

Part II: Imposition of the Tax

Provides the legal basis for taxing chargeable gains arising from the disposal of real property.
Covers tax rates, the determination of chargeable persons, allowable losses, exemptions, and special provisions for private residences.

Part III: Assessment and Collection

Details the assessment process for chargeable persons, return submissions, and amendments.
Includes provisions on deemed assessments, notices, appeals, relief for errors, payment obligations, and recovery methods.
Also outlines duties of acquirers and rules on double assessments and refunds.

Part IV: Investigatory and Penal

Grants investigative powers to tax authorities, including power to access buildings, call for information, and inspect bank records.
Outlines offences such as willful evasion, incorrect returns, and leaving the country without payment.
Includes penalties, compounding of offences, and court jurisdictions.

Part V: Administrative and Supplemental

Details the functions and powers of the Director General and officers appointed under the Act.
Includes rules for the identification of officials, service and authentication of notices, evidential provisions, and the use of electronic records.
Provides authority for the Minister to make regulations and repeal previous legislation.

Schedules

• Schedule 1 – Chargeable Persons

• Schedule 2 – Chargeable Gains and Allowable Losses

• Schedule 3 – Private Residences

• Schedule 4 – Exemptions

• Schedule 5 – Rates of Tax

Savings and Transitional Provisions

• Act 644 – Saving and transitional provisions

• Act 702/2010 – Savings and transitional amendments