STAMP DUTY
Stamp Duty (Exemption) Order 2021 & Stamp Duty (Exemption) (No. 2) Order 2021
Under the Stamp Duty (Exemption) Order 2021 [P.U.(A) 53/2021] and the Stamp Duty (Exemption) (No. 2) Order 2021 [P.U.(A) 54/2021], the stamp duty for instrument of transfer and loan agreement for the purchase by an individual of one unit of residential property (incl. a house, a condominium unit, an apartment or a flat) of not more than RM500,000.00 will be exempted if: -
1. The Sale and Purchase Agreement is executed on or after 1st January 2021 but not later than 31st December 2025; and
2. The individual is a Malaysian Citizen who has never owned any residential property including a residential property which is obtained by way of inheritance or gift, which is held either individually or jointly.
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Stamp Duty (Exemption) (No. 4) Order 2021 & Stamp Duty (Exemption) (No. 5) Order 2021
Under the Stamp Duty (Exemption) (No. 4) Order 2021 [P.U.(A) 301/2021] and the Stamp Duty (Exemption) (No. 5) Order 2021 [P.U.(A) 302/2021], any loan agreement to finance the purchase of a residential property (with value of more than RM300,000.00 but not more than RM2,500,000.00) and all instrument of transfer for the purchase of a residential property under the Home Ownership Campaign 2021 shall be exempted from stamp duty if: -
1. The Sale and Purchase Agreement is between the individual(s) [Malaysian citizen(s)] and a property developer [registered with Real Estate and Housing Developers’ Association (REHDA) Malaysia or Sabah Housing and Real Estate Developers’ Association (SHAREDA) or Sarawak Housing and Real Estate Developers’ Association (SHEDA)];
2. The purchase price in the Sale and Purchase Agreement is a price after a discount of at least 10% from the original price which is offered by property developer except for a residential property which is subject to controlled pricing; and
3. The Sale and Purchase Agreement is executed on or after 1st June 2021 but not later than 31st December 2021 and is stamped at any branch of the Inland Revenue Board Malaysia.
A HOC 2021 Certification issued by REHDA or SHAREDA or SHEDA shall be submitted to any branch of Inland Revenue Board Malaysia for the purpose of obtaining the aforesaid exemption.
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REAL PROPERTY GAINS TAX (RPGT)
Real Property Gains Tax (Exemption) Order 2020
Real Property Gains Tax will be exempted for Malaysian Citizen’s disposal of a residential property (i.e. a house, a condominium unit, an apartment or flat in Malaysia and includes a service apartment and a small office home office (SOHO), owned by an individual, jointly or solely, which is used only as a dwelling house) on or after 1st June 2020 until 31st December 2021 on the condition that: -
1. Not more than three (3) units of residential property disposed of shall be eligible for each disposer (meaning to say, the exemption is only applicable for a Malaysian Citizen’s disposal of up to three (3) units of residential property only during the aforesaid period);
2. The residential property disposed of is not acquired within the period from 1st June 2020 until 31st December 2021 by way of transfer between spouses, or by way of a gift between spouses, parent and child, or grandparent and grandchild where the donor is a citizen; and
3. The Sale and Purchase Agreement (or the Memorandum of Transfer if there is no Sale and Purchase Agreement) for the disposal of the residential property shall be executed on or after 1st June 2020 but not later than 31st December 2021 and is duly stamped not later than 31st January 2022.
Where the disposal of a residential property is a conditional contract which requires the approval by the Federal Government or a State Government, the above exemption shall only be applicable if: -
(a) The contract for the disposal of the property shall be executed on or after 1st June 2020 but not later than 31st December 2021 and is duly stamped not later than 31st January 2022;
(b) The approval by the Federal Government or the State Government concerned for the disposal of the residential property is obtained on or after 1st June 2020.
The disposer shall still comply with any requirement to submit any return or to furnish any other information under the Real Property Gains Tax Act 1976.
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