AdrianYeo Tax KL - The Business Ledger , Personal Tax

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

Fri, 10 Apr 2026 13:46:00 +0000

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.

Get Free Consultation

Influencers, Creators & Streamers: Are You Tax-Compliant Under LHDN Guidelines?

Sat, 24 Jan 2026 06:54:45 +0000

With the rapid growth of social media platforms like TikTok, Instagram, YouTube, and live-streaming channels, more Malaysians are earning income through content creation and brand collaborations.

What many creators may not realise is this:

👉 Income earned from social media is taxable under LHDN guidelines, effective from Year of Assessment (YA) 2024 onwards.

Whether you’re earning cash, receiving free products, or monetising content overseas, it’s important to understand your tax responsibilities early — before penalties arise.

📌 Who Is Considered a Social Media Influencer?

Under LHDN guidelines, influencers are broadly categorised into two groups:

Individual Influencers	Objected-based Influencers
- Content creators and self-employed individuals - Professionals, artists and athletes - Students, homemakers, or individuals sharing daily life contents ⁉️ Whether full-time or part-time, once you build influence on social media and earn income from it, you are considered an individual influencer for tax purpose.	- Animated or carton characters - Pet social media accounts - Virtual avatars or digital personas ⁉️ Even though these influencers are not real persons, any income generated is still taxable and must be declared by the owner of operator of the account.

💰 Types of Taxable Income for Influencers

The following income streams are taxable and must be declared:

Direct payments from social media platforms (e.g. YouTube AdSense, TikTok Creator Fund, Instagram monetisation)
Brand ambassador fees and paid reviews (cash and non-cash, including free products)
Product endorsements and sponsorships
Sale of influencer accounts or social media IDs
Sale of goods (physical or digital products)
Royalties from characters, images, or digital content
Appearance fees for talks, seminars, events, or live sessions

⚠️ Important: Free products and gifts received in exchange for promotion are considered non-cash income and are still taxable.

🧾 Allowable vs Non-Allowable Expenses

Understanding what you can and cannot deduct is crucial.

Allowable Expenses (Business Portion Only)	Non-Allowable Expenses
- Internet and data charges - Filming, editing, and content production costs - Capital allowance on qualifying business equipment (as per Schedule 3 of the Income Tax Act)	- Personal expenses - Capital expenses that do not qualify for capital allowance

📂 Record-Keeping Requirements

Influencers are required to maintain proper records to support income and expense claims, including:

Payment statements from platforms
Invoices and receipts
Sponsorship emails or agreements
Records of gifts and non-cash benefits

📌 All supporting documents must be retained for at least 7 years, in line with LHDN requirements.

💸 Estimated Tax & Installments (CP500)

You may be required to pay estimated tax installments if:

You earn non-employment income, or
LHDN issues you a CP500 notice

Installments must be paid by the due dates stated to avoid penalties and late payment charges.

⚠️ Why This Matters

Many influencers only focus on content creation and overlook tax compliance — until LHDN enforcement begins. Late declarations, under-reporting income, or failing to keep records can result in:

Additional tax assessments
Penalties
Late payment charges

Getting your tax position right early helps you stay compliant, protect your income, and build a sustainable career as a creator.

📞 Need Professional Guidance?

If you’re an influencer, creator, or streamer and unsure how to:

Declare cash and non-cash income
Track allowable expenses
Handle CP500 installments
Stay compliant with LHDN guidelines

Adrianyeo Tax KL is here to help you navigate influencer taxation with confidence.

Book A Free Consultation

Personal Income Tax Relief in Malaysia (YA 2025): What You Can Claim

Wed, 14 Jan 2026 03:06:14 +0000

Filing your income tax doesn’t have to be stressful — especially when you understand the tax reliefs available for Year of Assessment (YA) 2025. Personal tax reliefs help reduce your chargeable income, which in turn lowers the amount of tax you need to pay.

Below is a summary of the key personal tax reliefs for YA 2025 that every taxpayer in Malaysia should be aware of.

📌 Important Reminder

Tax relief claims must be supported by proper documents, such as receipts, insurance statements, and official confirmations. These documents should be retained for at least 7 years for audit purposes.

💡 Need Help With Your Tax Filing?

Understanding which reliefs apply to you — and claiming them correctly — can make a significant difference in your tax outcome.

If you’re unsure about your eligibility or want help with personal tax filing for YA 2025, feel free to contact Adrianyeo Tax KL for professional guidance.

Book a free consultation