Capital gains tax in Malaysia 2026: shares, crypto and property

Last reviewed: November 2026 · Reviewed by Stéphane Gombauld, tax expert, technologist and digital nomad

You hold an ETF portfolio, some crypto, maybe a condo in Kuala Lumpur, and you want to know what Malaysia takes when you sell. For most private investors, very little. This guide gives you the 2026 rates by asset, the property rules that bite foreigners, and the legal ways to keep more of your gain.

Malaysia capital gains tax in 2026: the key figures

What changed for 2026

• The company exemption for foreign gains now runs to 31 December 2030. LHDN's amended guideline of 29 September 2026 states the new end date.
• "Disposal" now covers more share events. From 1 January 2026, the Finance Act 2025 brings share redemptions, buy-backs, capital reductions and winding-up into the company CGT. LHDN reissued its unlisted-shares guideline on 21 September 2026 to match.
• RPGT losses expire. The same Act limits the carry-forward of RPGT losses to nine consecutive years of assessment, from YA 2026. RPGT rates themselves are unchanged.
• RPGT buyers have a new option from YA 2026. The buyer may remit the seller's notified self-assessed tax instead of the standard retention, choosing the lower amount.

Is this guide for you?

Read on if you…

• live in Malaysia, or plan to, and will sell shares, funds, crypto or property;
• own Malaysian property as a foreigner and want to time the sale;
• hold investments through a company and need the corporate rules.

Probably not your case if you…

• are resident elsewhere and own no Malaysian assets (your home country's rules apply);
• run a licensed trading or fund business, which follows business income rules in full.

Does Malaysia tax capital gains on shares, funds and crypto?

The Income Tax Act 1967 taxes income: business profits, employment, rent, interest. A gain from selling a capital asset is not income, so individuals generally pay nothing on it.

The capital gains tax is for companies

Since 2024 Malaysia taxes capital gains of companies, limited liability partnerships, trust bodies and co-operatives. LHDN's guideline on CGT for unlisted shares lists these as the chargeable persons. Individuals are not on the list.

The tax took effect for disposals from 1 March 2024. It covers two things:

1. Unlisted shares of Malaysian companies, plus shares in foreign controlled companies (50 members or fewer, controlled by 5 persons or fewer) whose Malaysian property or similar assets make up at least 75% of total tangible assets. The rate is 10% of the gain. For shares acquired before 1 January 2024, the company may instead pay 2% of the gross disposal price.
2. Foreign capital assets, when the gain is received in Malaysia. These are taxed at the company's prevailing rate, unless the company meets the economic substance test: adequate qualified staff and operating spending in Malaysia.

The company files a CGT return (e-CKM) and pays within 60 days of the disposal.

Funds and ETFs

Selling ETFs or redeeming unit trusts is a capital disposal for a private investor, so the gain is not taxed. Distributions are a separate question: they are income, and their treatment depends on the source.

Crypto

LHDN's digital currency guideline, second edition of 5 December 2025, is clear on the base case. Gains on digital currency held as a capital asset are not subject to capital gains tax. Its own example treats an investor's RM16,000 gain as not taxable.

Here's the catch: LHDN applies the badges of trade, the signs that you are running a business. These include your motive at purchase, holding period, frequency, extra work done and how you financed the buys. No single badge decides. Active traders, miners and businesses accepting crypto are taxed under section 4(a) ITA as business income. The detail is in our guide to cryptocurrency taxes in Malaysia.

How does real property gains tax (RPGT) work?

RPGT taxes the gain when you dispose of Malaysian land or buildings, or shares in a real property company. It applies whether or not you are tax-resident. Since 2024, companies selling shares in real property companies fall under CGT instead.

RPGT rates by holding period

LHDN's RPGT rate page sets the rates in force since 2022 for individuals and since 2019 for the other parts:

The holding period runs from the acquisition date to the disposal date. Both are normally the date of the written sale agreement, not the date the title changes.

How the gain is calculated

1. Start with the sale price, minus selling costs such as agent and legal fees.
2. Deduct the purchase price and buying costs, including stamp duty.
3. Deduct capital improvements, such as a renovation that adds value. Keep the invoices.
4. As an individual, deduct the exemption: RM10,000 or 10% of the gain, whichever is greater.
5. Apply the rate for your holding period and status.

Retention, filing and payment

The buyer must retain part of the price and remit it to LHDN within 60 days. LHDN's retention page sets 3% for Part I sellers, 7% for non-citizens, and 5% or 3% for Malaysian companies.

Since disposals from 1 January 2025, RPGT is self-assessed. You file the RPGT return within 60 days of the sale and pay any balance within 90 days. Keep your documents for 7 years.

Exemptions worth knowing

• Private residence: a Malaysian citizen or permanent resident can exempt the gain on one private residence, once in a lifetime, by electing on Form CKHT 3. The election is irrevocable.
• Family transfers: gifts between spouses, parents and children, or grandparents and grandchildren are treated as no gain, no loss, if the donor is a Malaysian citizen.
• Inheritance: a transfer from the executor to a beneficiary produces no taxable gain.

How much do residents and non-residents really pay?

Your tax residence, the 182-day test in section 7 ITA explained in our guide to tax residency in Malaysia, barely changes the answer on investments. Neither residents nor non-residents pay tax on shares or crypto held as capital assets.

For property, what matters is citizenship status. A foreigner on an Employment Pass, DE Rantau pass or MM2H visa is a Part III disposer, even if tax-resident. Only permanent residency moves you to the citizen scale.

For trading income, residence does matter. Residents pay progressive rates from 0% to 30%. Non-residents pay 30% on Malaysian-source income, with no reliefs.

Malaysia has no exit tax. Leaving does not trigger a deemed sale of your portfolio. Malaysian property stays within RPGT whenever you sell it, even years later. See how to cease your tax residency in Malaysia.

How can you pay less tax on gains, legally?

• Time property sales. For a foreigner, moving a sale from the 5th to the 6th year cuts RPGT from 30% to 10%.
• Keep every receipt. Stamp duty, legal fees and renovations reduce the taxable gain.
• Stay an investor. Fewer trades, longer holding periods and no borrowing keep crypto and shares outside business income.
• Use the private residence election wisely. It is once in a lifetime, so save it for the home with the largest gain.
• Hold investments personally where it fits. Companies pay 10% on unlisted share gains; individuals do not.

Common mistakes (and what they cost)

• Assuming Malaysia taxes no gains at all → a foreign seller in years 1 to 5 pays 30% RPGT, often unbudgeted.
• Losing renovation receipts → improvements cannot be deducted, so you pay up to 30% on money you already spent.
• Day-trading crypto as an "investment" → LHDN can treat the gains as business income at up to 30%, plus penalties for an incorrect return.
• Missing the 60-day RPGT filing → penalties and increases in tax, and the 7% retention stays locked up longer.
• Holding a Malaysian startup stake through a company without planning → 10% CGT on exit that a personal holding would not trigger.

Frequently asked questions

Do individuals pay capital gains tax in Malaysia?

Not on shares, funds or crypto held as investments. The capital gains tax introduced in 2024 applies only to companies, LLPs, trust bodies and co-operatives. Individuals meet capital gains tax in one place: real property gains tax on land, buildings and shares in real property companies. Gains become taxable income only if your activity amounts to trading.

How is crypto taxed in Malaysia in 2026?

Gains on crypto held as a capital asset are not taxed, according to LHDN's December 2025 guideline. If you trade actively, mine as a business or accept crypto in your business, the profits are business income under section 4(a) ITA. That income is taxed at resident rates of 0% to 30%, or 30% if you are non-resident.

What is the RPGT rate for foreigners in Malaysia?

Non-citizens who are not permanent residents pay 30% RPGT on property sold within five years of purchase and 10% from the sixth year. Citizens and permanent residents pay 30% within three years, 20% in the fourth, 15% in the fifth and nothing from the sixth. The buyer retains 7% of the price from a non-citizen seller.

Is there an exit tax when you leave Malaysia?

No. Malaysia has no exit tax and no deemed disposal when you stop being resident. Unrealised gains on shares, funds or crypto are not taxed on departure. Malaysian property stays within RPGT whenever you sell it, even as a non-resident. Your new country may tax future gains, so time large disposals with both systems in mind.

Are foreign capital gains taxed when brought into Malaysia?

For individuals, no: the charge on foreign capital gains covers only companies, LLPs, trust bodies and co-operatives. A company is taxed at its normal rate on foreign gains received in Malaysia, unless it meets the economic substance or participation conditions. That exemption now runs until 31 December 2030.

How do I reduce RPGT legally?

Hold the property longer, since rates fall with each year of ownership. Deduct every allowable cost: stamp duty, legal fees, agent commission and capital improvements, backed by receipts. Claim the exemption of RM10,000 or 10% of the gain. Citizens and permanent residents can also elect a once-in-a-lifetime exemption on one private residence.

Related guides

• Malaysia tax landscape overview
• Cryptocurrency taxes in Malaysia
• Stamp duty, SST and other specific taxes in Malaysia
• Tax residency rules in Malaysia
• How to cease your tax residency in Malaysia
• Capital gains tax in Hong Kong, for comparison
• Capital gains tax in Sri Lanka, for comparison
• All country tax guides

Sources

• Real property gains tax rates – LHDN
• RPGT exemptions – LHDN
• Retention and remittance by acquirer – LHDN
• RPGT self-assessment system – LHDN
• Guidelines on capital gains tax for unlisted shares (21 September 2026) – LHDN
• Guidelines on gains from foreign capital assets received in Malaysia (amended 29 September 2026) – LHDN
• Guidelines on tax treatment of digital currency transactions (5 December 2025) – LHDN

This guide is general information, not personalised tax advice. See how we research and review.