TaxSavvyMY

Do individuals pay CGT on unlisted shares

I sold my shares in a Sdn Bhd as an individual. Is CGT due?

The situation

The CGT guideline applies to companies, LLPs, trust bodies and co-operatives. Individuals are not covered by this regime.

The law

  • Secs 65E and 65F and Part XXI of Schedule 1, Income Tax Act 1967: Capital gains tax on disposal of unlisted shares: 10% of gain, or 2% of gross price for shares bought before 1 Jan 2024

What it means for you

If you trade shares as a business, gains may still be business income. Real property company shares can fall under RPGT. Check your facts. Shares held through your own investment company are a different case, because the company is the seller. Structure matters for who pays.

What to do

  1. Confirm you hold the shares as an individual.
  2. Check if it is a trading activity.
  3. Check RPGT for property companies.
  4. Keep records.

We can do this for youCapital gains tax on disposal of unlisted shares: MYR 2,000

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