Capital Gains Tax Malaysia: What CGT Means for Property, Shares, and Crypto Sellers

Malaysia does not have a broad, general capital gains tax. What it does have is a growing set of targeted taxes on specific asset disposals, and since 2024, that set expanded significantly with a new Capital Gains Tax on unlisted shares. If you are selling property, shares, or crypto in Malaysia, here is exactly what applies to you.

The landscape: three separate regimes

Malaysia taxes capital-like gains through three distinct frameworks. They are not interchangeable, and the rules for each differ considerably.

Asset type	Governing tax	Applies to
Real property (land, buildings)	Real Property Gains Tax (RPGT)	Individuals, companies, foreigners
Unlisted company shares	Capital Gains Tax (CGT)	Companies, LLPs, co-ops, trust bodies (not individuals)
Listed shares (Bursa)	No capital gains tax	All sellers
Crypto / digital assets	Income tax (if revenue in nature)	Individuals and businesses

1. Real Property Gains Tax (RPGT): selling property

RPGT has been around since 1976 and is the tax most Malaysians associate with “capital gains.” It applies when you dispose of any real property situated in Malaysia, including bare land, houses, shophouses, and shares in Real Property Companies (RPCs).

RPGT rates from 2024 onward

The rate you pay depends on how long you held the property before selling and your residency status. All rates below apply to disposals made from 1 January 2024 (source: LHDN RPGT rates page).

Holding period	Malaysian citizens and PRs	Malaysian companies	Foreigners / foreign companies
Up to 3 years	30%	30%	30%
Year 4	20%	20%	30%
Year 5	15%	15%	30%
Year 6 and beyond	0%	10%	10%

Key point for homeowners: Malaysian citizens and permanent residents pay zero RPGT once they have held a property for more than five years. This is why most long-term homeowners are unaffected by RPGT in practice.

RPGT exemptions worth knowing

One lifetime exemption for individuals: Each Malaysian citizen or PR is entitled to a once-in-a-lifetime full exemption on the disposal of one residential property, regardless of holding period.
Low-gain exemption: On each disposal, individuals may exclude RM10,000 or 10% of the chargeable gain, whichever is higher, from RPGT.
Transfers between spouses are exempt, as are certain transfers to children and transfers arising from gifts.
Compulsory acquisition by the government is also exempt.

Filing deadline

From 1 January 2025, RPGT operates under a self-assessment system. Sellers must submit their RPGT Return Form and pay within 60 days of the disposal date. The disposal date is the date the Sale and Purchase Agreement (SPA) is signed, not the date of completion or vacant possession.

2. Capital Gains Tax (CGT) on unlisted shares: the 2024 expansion

This is the newest addition to Malaysia’s tax landscape. CGT on gains from the disposal of unlisted shares was introduced with effect from 1 March 2024 (source: LHDN Guidelines on Capital Gains Tax for Unlisted Shares, 2025 edition).

Who is subject to CGT?

CGT on unlisted shares applies to:

Companies incorporated in Malaysia
Limited Liability Partnerships (LLPs)
Co-operatives
Trust bodies

Individuals are explicitly excluded from CGT on unlisted shares. If you sell shares in a private company as an individual, you are currently not subject to this CGT.

What disposals trigger CGT?

From 1 January 2026, the definition of “disposal” was broadened. CGT is now triggered by any event that causes the cessation of share ownership, including:

Outright sales
Share redemptions
Share conversions
Winding up or dissolution
Share buybacks
Forced cancellations

This is a significant widening from the original 2024 scope, which focused more narrowly on traditional sales.

CGT rates for unlisted shares

Scenario	Rate
Shares acquired on or after 1 January 2024	10% of net chargeable gain
Shares acquired before 1 January 2024	Choice of 10% on net gain, or 2% on gross disposal price

The option to pay 2% on gross disposal price exists as a simplified alternative for legacy holdings where acquisition costs are difficult to document.

Key CGT exemptions

Several exemptions apply and most have sunset dates, so deadlines matter:

Group restructuring: A company disposing of unlisted shares to another Malaysian-tax-resident company within the same group is exempt, for disposals from 1 March 2024 to 31 December 2028.
IPO-related disposals: Disposals of shares connected to an IPO approved by Bursa Malaysia are exempt, from 1 March 2024 to 31 December 2028.
Resident unit trusts: Unit trusts (excluding REITs and property trust funds listed on Bursa) are exempt from CGT on unlisted shares, for disposals from 1 January 2024 to 31 December 2028.
Foreign capital assets: Gains from disposing of capital assets situated outside Malaysia (excluding intellectual property rights), when remitted into Malaysia, are exempt if economic substance requirements are met, from 1 January 2024 to 31 December 2030 (extended in Budget 2026).

Section 15C shares: foreign companies owning Malaysian property

CGT also applies to “section 15C shares,” which are shares in a foreign-incorporated company that derives its value principally from real property situated in Malaysia. This prevents structured avoidance where a Malaysian property is sold indirectly through a foreign holding company.

3. Listed shares on Bursa Malaysia: still tax-free

Gains from selling shares listed on Bursa Malaysia remain free of capital gains tax for all sellers, whether individuals or companies. This has been a consistent feature of Malaysia’s tax policy and was reaffirmed when the 2024 CGT was introduced. The government’s stated intent was to target private-company share disposals without disturbing the public equity market.

Dividends from listed shares may be subject to income tax depending on the payer’s tax status, but the capital gain on disposal itself is not taxed.

4. Crypto and digital assets: it depends on your behaviour

Malaysia does not yet apply a dedicated capital gains tax to cryptocurrency. However, gains from crypto disposals are not automatically tax-free either.

LHDN’s Guidelines on the Tax Treatment of Digital Currency Transactions (originally issued 2022, updated December 2025) establishes the principle: gains are only taxable if they are revenue in nature, meaning they arise from a trading or business activity rather than a passive holding.

How LHDN determines whether your crypto gains are taxable

LHDN applies “badges of trade” criteria, including:

Frequency and volume: How often do you buy and sell?
Holding period: Are your holds short-term (suggesting trading intent)?
Organisation and systematisation: Do you follow a strategy or use automated tools?
Profit motive: Was acquiring the asset primarily for resale profit?

A retail investor who bought Bitcoin in 2020, held it, and sold in 2024 is unlikely to be treated as carrying on a trade. A person running a high-frequency arbitrage operation across multiple exchanges is more likely to have taxable revenue gains.

Staking rewards and airdrops

Staking rewards are generally treated as income at the point of receipt, valued at their market price in RM on the date received. They are reportable under income tax, not RPGT or CGT.

Record-keeping for crypto

LHDN’s guidance requires all digital currency transactions to be recorded in RM at market value on the transaction date. Acquisition cost should be calculated on a first-in-first-out (FIFO) basis. Maintaining clean records is essential if LHDN ever queries your filings.

Key takeaways

Malaysia does not have a comprehensive capital gains tax. What exists is three targeted regimes: RPGT for property, CGT for unlisted-share disposals by companies, and income tax on crypto trading gains.
Individuals selling property: RPGT rates drop to 0% after five years for citizens and PRs. You also have one lifetime full exemption.
Companies selling unlisted shares: CGT at 10% applies from March 2024. The definition of “disposal” widened in 2026. Review group structure exemptions carefully before any restructuring.
Individuals selling unlisted shares: Currently not subject to CGT. Watch for future Budget changes.
Bursa Malaysia investors: Gains on listed share sales remain tax-free.
Crypto holders: No dedicated CGT, but active traders may owe income tax on revenue gains. LHDN distinguishes trading from investing based on your patterns.
CGT exemptions for group restructuring, IPOs, and unit trusts expire 31 December 2028. Plan accordingly.

Frequently asked questions

Q: I am a Malaysian individual who sold shares in a private limited company. Do I owe CGT?

As of mid-2026, CGT on unlisted shares in Malaysia applies only to companies, LLPs, co-operatives, and trust bodies. Individuals are not within scope. However, LHDN may assess whether any gain is revenue in nature (i.e., part of a business activity), in which case income tax could apply.

Q: I sold my house after holding it for seven years. Do I owe RPGT?

If you are a Malaysian citizen or permanent resident and held the property for more than five years, RPGT is 0%. No tax is owed on the gain. You still need to submit the RPGT Return Form within 60 days of signing the SPA.

Q: Does the CGT on unlisted shares affect foreign investors holding shares in Malaysian private companies?

Yes, if the foreign investor holds shares through a vehicle that falls within scope (a company, LLP, co-op, or trust body), CGT applies. Foreign individuals are not specifically excluded from the individual exclusion. Gains from section 15C shares (foreign companies whose value is principally derived from Malaysian real property) are also within CGT scope.

Q: I received Bitcoin as a freelance payment. Is that taxable?

Yes. Digital currency received as payment for services is treated as income at its RM value on the date received, and is subject to income tax. This is separate from any gain you might make if you later sell that Bitcoin.

Q: My company is restructuring and transferring shares to a subsidiary. Is CGT triggered?

The group restructuring exemption may apply if the acquiring company is tax-resident in Malaysia and the disposal falls within the exemption window (1 March 2024 to 31 December 2028). You should confirm the specific conditions with a qualified tax adviser and verify current LHDN guidelines, as the rules are still relatively new.

For more context on how the Malaysian tax system works for investors and savers, see Tax and Government guides and our overview of investing in unit trusts and ASNB in Malaysia.

Educational content only, not financial advice. Verify current figures with official sources.