Capital gains tax on disposal of unlisted shares

We work out the gain, compare 10% of gain with 2% of gross price for pre-2024 shares, file the return within 60 days and pay on time.

MYR 2,000Per disposal

For: Companies, LLPs, trust bodies and co-operatives (including Labuan entities) that dispose of shares in unlisted Malaysian companies, or shares in certain foreign controlled companies owning Malaysian property or shares.

What we need from you

Share sale agreement and completion date
Date of disposal
Cost of acquisition and date acquired
Gain and rate option
Incidental costs (legal, valuation)
Deductible from gain
Target company balance sheet
s15C test for foreign holdcos
Valuation or market value evidence
Supports price and cost figures

What we discuss

Were the shares acquired before 1 January 2024?
Option of 2% of gross disposal price
Is this a group restructuring?
Possible exemption, check guideline
Is the seller an individual?
CGT on unlisted shares applies to companies, LLPs, trust bodies and co-operatives
Is the buyer paying in instalments?
Disposal date still drives the 60 days

What we file

Compute gain and choose method
Example: bought 2019 for RM1,000,000, sold 2026 for RM1,600,000: 10% of RM600,000 = RM60,000 vs 2% of RM1,600,000 = RM32,000; choose RM32,000
File e-CKM return
Pay CGT

What you get

CGT computation and return acknowledgement
Payment receipt

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 Source
Para 4(aa), Income Tax Act 1967: Gains from disposal of capital assets are a class of income Source
Sec 15C, Income Tax Act 1967: Disposal of shares in a foreign controlled company owning Malaysian real property or shares treated as taxable Source

Questions people ask

Online payment in MYR is not open yet. Send us a message and an adviser for Malaysia confirms the scope and the fee before any work starts.