Real Property Gains Tax (RPGT) 2026: What You Need to Know About LHDN’s New Self-Assessment System

Fri, 10 Apr 2026 21:46:00 +0800

The Lembaga Hasil Dalam Negeri Malaysia (LHDN) has introduced a significant update to the Real Property Gains Tax (RPGT), also known as Cukai Keuntungan Harta Tanah (CKHT), through its Operational Guidelines No. 2 of 2026.

Effective from January 1, 2025, Malaysia transitions to a Self-Assessment System (STS) for RPGT—marking a major shift in how property gains tax is reported, assessed, and paid.

What is RPGT?

Real Property Gains Tax (RPGT) is a tax imposed on gains arising from the disposal of real property or shares in real property companies in Malaysia. It applies to individuals, companies, and other entities.

Key Change: Introduction of Self-Assessment System (STS)

Under the new STS framework:

The seller’s CKHT return form (CKHT 1A / CKHT 1B) is now automatically treated as a deemed tax assessment
This eliminates the need for LHDN to issue a formal notice of assessment
Taxpayers are now fully responsible for accurate reporting and timely payment

This change aligns RPGT with other tax systems in Malaysia, improving efficiency and compliance.

Responsibilities of the Seller (Disposer)

Property sellers now carry greater responsibility under the new rules:

Mandatory e-Filing

All RPGT submissions must be done via the e-CKHT system.

Submit CKHT 1A / CKHT 1B
Deadline: Within 60 days from the date of disposal

Tax Payment

Any balance tax must be paid within 90 days from the disposal date

Amendments

Sellers are allowed one amendment
Must be submitted within 6 months from the original filing deadline

Record Keeping

All relevant documents must be retained for 7 years

Responsibilities of the Buyer (Acquirer)

Buyers also play a crucial role in ensuring tax compliance:

Submit Acquisition Form

File CKHT 2A via e-CKHT
Deadline: Within 60 days from acquisition date

Withholding Tax Obligation

Buyers must retain a portion of the purchase price and remit it to LHDN:

3%, 5%, or 7% depending on the seller’s status
Payment must be made within 60 days from the disposal date
This amount acts as a prepayment of the seller’s RPGT liability

Exemption Scenario

No withholding is required if the seller provides CKHT Form 3 (Exemption Certificate)

New Update (Effective January 1, 2026)

A key enhancement introduced in 2026:

Buyers may opt to withhold based on the seller’s “deemed assessment” amount
This applies if the seller provides the calculated tax payable
It replaces the standard 3% / 5% / 7% withholding rate

This allows for more accurate tax collection and reduces the risk of under- or over-withholding.

Important Deadlines to Remember

Obligation	Deadline
Filing CKHT Forms	Within 60 days
Buyer’s Withholding Payment	Within 60 days
Seller’s Tax Payment	Within 60 days

Penalties for Non-Compliance

Failure to comply with RPGT obligations can result in significant penalties:

Late Payment Penalty: 10% increase on unpaid tax
Failure to File: Up to 3 times the tax amount
Legal Action: Possible prosecution for serious non-compliance

Why This Matters

The shift to a self-assessment system means:

Greater accountability for taxpayers
Faster processing by LHDN
Increased importance of accurate tax computation and timely submission

For both buyers and sellers, understanding these obligations is essential to avoid penalties and ensure smooth property transactions.

Final Thoughts

LHDN’s RPGT Operational Guidelines No. 2 of 2026 represents a major step toward modernizing Malaysia’s tax administration. With mandatory e-filing, strict deadlines, and clearer responsibilities, the system is designed to be more efficient—but also less forgiving of errors.

Learn More

If you are planning to buy or sell property, it is highly advisable to work with a qualified tax professional to ensure full compliance under the new rules.

Reach out to us if you need further information and assistance on RPGT.

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