My wife and I are shareholders of Company X Sdn Bhd that owns a piece of land in Penang (“Penang Land”). The Penang Land was bought in 2004 for RM10 mil. My wife and I have sold the shares of the company to my friend, Mr. A in 2018. We are required to pay real property gain tax (“RPGT”) if we sell the Penang Land to Mr. A. But we are not selling the land but shares of Company X Sdn Bhd. Are we still required to pay RPGT?


Q: What is a “real property company”?

Q: Would there be any difference if Company X Sdn Bhd is a property development company and the purchase of the shares by Mr. A is because Mr. A wants to invest in a property development company. In another words, Mr. A’s intention is not to buy the Penang Land per se.

Q: What is a “chargeable asset”?