Capital Gains Tax:

Its Implementation and The Broader Impact Concurrently with Income Tax and RPGT

Michael Cheah

What is Capital Gains Tax?

On 29 December 2023, the Finance (No.2) Act 2023 was published, and with it, the tax laws governing Capital Gains Tax (“CGT”) were formally enacted.

Generally, Malaysia does not impose CGT except on gains arising from the disposal of real property in Malaysia which may be subject to Real Property Gains Tax (“RPGT”) at a maximum RPGT rate of 30%.


Headline corporate CGT rate (%)


Subject to standard corporate income tax (CIT) rate of 20%


Subject to standard CIT rate of 22%


Subject to standard CIT rate of 20%


Subject to standard CIT rate of 20%


10% for non-oil and gas sector;
40% to 50% for oil and gas sector



Who is affected?

  • Companies
  • Trust Bodies
  • Limited Liability Partnerships (LLP)
  • Co-Operative Societies

Implementation Dates

Effective date

Types of Capital Assets Affected

1 Jan 2024

Foreign Capital Assets

1 Mar 2024*

•Local Unlisted Shares
•Shares Deemed Acquired in Malaysia Pursuant to Section 15C of the ITA (see Page 6)

*The effective date has been deferred to 1 March 2024 with the gazette of Income Tax (Exemption) (No.7) Order 2023.

Types of Capital Assets subject to this CGT

  1. Local unlisted shares
  2. Section 15C
    • foreign unlisted company shares deemed acquired in Malaysia
  3. All types of foreign capital assets


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