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Stamp Duty Exemption [Family Member]
The law not yet enforced. It was mentioned in Budget 2023.
Law : PUA 369/2019
Date of Enforcement: 01.01.2020
Stamp Duty (Remission) (No. 2) Order 2019
Benefit: 50% Stamp Duty discount (from father/mother to children) or (both parent to children)
Criteria:
(1) Instrument transfer executed on or after 01.01.2020
(2) must be Malaysian
Previously Law:
Stamp Duty (Remission) (No. 7) Order 2002 [PUA 434/2002] is revoked
Law : PUA 420/2007
Date of Enforcement: 08.09.2007
Stamp Duty (Exemption) (No. 10) 2007
Benefit: 100% Stamp Duty exemption between spouses
Normal Stamp Duty ("SD") rate applies, as sibling does not enjoy any SD exemption/remission
Law : PUA 369/2019
Date of Enforcement: 01.01.2020
Stamp Duty (Remission) (No. 2) Order 2019
Benefit: 50% Stamp Duty discount (from father/mother to children) or (both parent to children)
Applicable: Father/Mother enjoys 50% Stamp Duty discount if transfer property to step children
Law : PUA 369/2019
Date of Enforcement: 01.01.2020
Stamp Duty (Remission) (No. 2) Order 2019
Benefit: 50% Stamp Duty discount (from father/mother to children) or (both parent to children)
Applicable:
(1) Father/Mother enjoys 50% Stamp Duty discount if transfer property to adopted children
(2) Adopted Children has to have "adoption order" granted under Adoption Act 1952.
Law : PUA 369/2019
Date of Enforcement: 01.01.2020
Stamp Duty (Remission) (No. 2) Order 2019
Benefit: 50% Stamp Duty discount (from father/mother to children) or (both parent to children)
Applicable:
(1) Father/Mother enjoys 50% Stamp Duty discount if transfer property to legitimate children
(2) Legitimate children refers to children where their parent born their children overseas/children who receives legitimacy status for parents who register their marriage after they have giving birth to the child.
Stamp Duty Exemption [Developer & Subsale]
Budget 2023
The new law on Stamp Duty ("SD") exemption for property RM1 million and above has yet to be enforced.
Current Law
1st RM100K x 1%
2nd RM400K x 2%
3rd RM500K x 3%
next RM500K x 4%
Budget 2023
The new law on Stamp Duty ("SD") exemption for property RM1 million and above has yet to be enforced.
Current Law
1st RM100K x 1%
2nd RM400K x 2%
3rd RM500K x 3%
next RM500K x 4%
Law : (P.U.(A) 53/2021)
Date of Enforcement: 01.01.2021
Stamp Duty (Exemption) Order 2021
Benefit: 100% Stamp Duty Exemption
Criteria:
(1) Sale & Purchase Agreement signed on 01.01.2021 and not later than 31.12.2025
(2) never inherit property from family member/3rd party either jointly or individually
(3) need to affirm a Statutory Declaration
(4) residential refers to flat, a house, a condominium, and not "mixed commercial title property"
(5) individual refers to Malaysian Citizen only
* foreigner/permanent resident is not eligible
Law : (P.U.(A) 53/2021)
Date of Enforcement: 01.01.2021
Stamp Duty (Exemption) Order 2021
Benefit: 100% Stamp Duty Exemption
Criteria:
(1) Sale & Purchase Agreement signed on 01.01.2021 and not later than 31.12.2025
(2) never inherit property from family member/3rd party either jointly or individually
(3) need to affirm a Statutory Declaration
(4) residential refers to flat, a house, a condominium, and not "mixed commercial title property"
(5) individual refers to Malaysian Citizen only
* foreigner/permanent resident is not eligible
Stamp Duty for Loan, SPA, Tenancy & Gift
Law : Stamp Act 1949
refer to :
(1) 1st Schedule, item 4 of Stamp Act 1949 -
Sale and Purchase Agreement - RM10
Benefit: Stamping SPA - to pay nominal stamp duty of RM10/per copy
Law : Stamp Act 1949
refer to :
(1) 1st Schedule, item 27 (iii) :
Loan Agreement:
Loan sum x 0.5%
Ie - RM100,000 x 0.5%
= RM500 stamp duty on loan agreement
RM500 + RM30 = RM30 for 3 copies duplicate stamp duty of the loan agreement
Law : Stamp Act 1949
refer to :
(1) 1st Schedule, item 49 of Stamp Act 1949 -
* 1st annual rental income of RM2,400 is exempted
(1) less than one [1] year :
every RM250 x 1%
(2) 1st year - 3rd year :
every RM250 x 2%
(3) exceed 3 years :
every RM250 x 3%
Benefit: Ad Valorem Stamp duty imposed on rental agreement based on annual rental income
Stamp Duty for Deceased, Executor, Administrator & Legal Representative
Law : Stamp Act 1949
refer to :
(1) Section 4(1) -
"Subject to [SA] and subject to the exemptions contained in [SA] and in any written law for the time being in force, the several instruments specified in the First Schedule shall, from and after the commencement of [SA], be chargeable with the several duties specified in such Schedule."
(2) Item 32(i) -
"of any kind not otherwise specially charged with duty Of any kind not otherwise specially charged with duty"
- chargeable with RM10 /nominal stamp duty
Benefit: for Probate matter - to pay nominal stamp duty or RM10
Law : Stamp Act 1949
refer to :
(1) Section 4(1) -
"Subject to [SA] and subject to the exemptions contained in [SA] and in any written law for the time being in force, the several instruments specified in the First Schedule shall, from and after the commencement of [SA], be chargeable with the several duties specified in such Schedule."
(2) Item 32(i) -
"of any kind not otherwise specially charged with duty Of any kind not otherwise specially charged with duty"
- chargeable with RM10 /nominal stamp duty
Benefit: for LA matter - to pay nominal stamp duty or RM10
Law : Stamp Act 1949 (Act 378)
refer to:
(1) Section 16(1) -
"Any conveyance or transfer operating as a voluntary disposition inter vivos shall be chargeable, with the like stamp duty as if it were a conveyance or transfer on sale."
Benefit: the Stamp Duty is charged as per normal transfer [full stamp duty]
(2) refer to Item 32(h) -
"of any property by way of gift (whether by way of voluntary disposition or otherwise)"
[full stamp duty]
Law : Stamp Act 1949
refer to :
(1) Item 32(a) -
"of any kind not otherwise specially charged with duty Of any kind not otherwise specially charged with duty"
- chargeable with ad valorem stamp duty as if it is a normal sale of property to a 3rd party
Stamp Duty Remission for Stamp Duty on Memorandum of Transfer for Property Price RM500,000 and not more then RM1,000,000 [Developer's Unit]
Stamp Duty (Remission) (No. 2) Order 2023
[P.U.A 180/2023] | [Updated 09.06.2023]
The law takes operation on 01.06.2022. The criteria are as follow:
(i) sale and purchase signed between developer's unit and purchaser;
(ii) the purchase price of property received a 10% per cent discount by property developer;
(iii) sale and purchase agreement signed on or after 01.06.2022 and not later than 31.12.2023 and to be stamped latest by 31.01.2024; and
(iv) individual purchaser never owned any property by way of inheritance jointly or individually
Effect :
Stamp duty on instrument of transfer (Memorandum of Transfer or Deed of Assignment) gets discount of 75%.
ie, RM500,000 - purchase price
1st RM100,000 x 1% = RM1,000
2nd RM400,000 x 2% = RM8,000
total gross stamp duty payable = RM9,000
discount 75% = RM9,000 x 75% = RM6,750
= RM9,000 - RM6,750
= RM2,250 (total nett stamp duty payable)
Stamp Duty Remission for Stamp Duty on Loan Agreement for Property Price RM500,000 and not more then RM1,000,000 [Developer's Unit]
Stamp Duty (Remission) Order 2023
[P.U.A 179/2023] | [Updated 09.06.2023]
The law takes operation on 01.06.2022. The criteria are as follow:
(i) sale and purchase signed between developer's unit and purchaser;
(ii) the purchase price of property received a 10% per cent discount by property developer;
(iii) sale and purchase agreement signed on or after 01.06.2022 and not later than 31.12.2023 and to be stamped latest by 31.01.2024; and
(iv) individual purchaser never owned any property by way of inheritance jointly or individually
Effect :
stamp duty on loan agreement gets discount of 75%.
ie, RM500,000 - loan sum
RM500,000 x 0.5%
= RM2,500 (gross stamp duty)
=RM2,500 x 75%
= RM1,875 (discounted sum)
=RM2,500 - RM1,875
=RM625 (nett stamp duty payable)
Stamp Duty Exemption for Transfer of Property for Mother/Father to Son, Son to Father/Mother, Grandfather/GrandMother to GrandChild, and Grand Child to GrandFather/GrandMother
[P.U.A 178/2023] | [Updated 09.06.2023]
On 09.06.2023, the Government has gazetted the P.U.(A) 178/2023, Stamp Duty (Exemption) (No.3) Order 2023 which allows for the exemption of any stamp duty payable on the transfer of property subjected to the 1st RM1 million based on the following party:
(i) Mother/Father to Son
(ii) Son to Father/Mother
(iii) Grandfather/GrandMother to GrandChild
(iv) Grand Child to GrandFather/GrandMother
Criteria:
1st RM1,000,000 - full exemption Stamp Duty on the 1st RM1 million
Excess RM1,000,000 - 50% of Stamp Duty chargeable on the excess of RM1,000,000
applicable to transfer that dated on or after 01.04.2023
recipient is a Malaysian Citizen
Child - legitimate children, step children or adopted Children
Formula to calculate:
RM1,000,000 - no stamp duty
Excess RM1,000,000; ie, RM1, 200,000
RM200,000 x 4% = RM8,000
RM8,000x 50% = RM4,000
Stamp Duty Taxable is RM4,000 (50% discount)
Stamp Duty Exemption for Memorandum of Transfer for Property below RM500,000 (Developer's Unit)
[P.U.A 177/2023] | [Updated 09.06.2023]
On 09.06.2023, the Government has gazetted the P.U.(A) 177/2023, Stamp Duty (Exemption) (No.2) Order 2023 which allows for the exemption of any stamp duty payable on the memorandum of transfer for the purchase price of residential property not exceeding RM500,000. The criteria are as follow:
(i) value of a residential property not more than RM500,000 executed between individual and developer;
(ii) the purchase price under sale and purchase agreement is a price after discount of at least 10% per cent from the original price offered by the property developer;
(iii) the execution has to take place on or after 01.06.2022 and not later than 31.12.2023, and the sale and purchase agreement has to be stamped by 31.01.2024; and
(iv) individual (buyer) is first time home buyer; never inherit any property either jointly or individually
the definition of "residential property" means house, a condominium unit, an apartment or a flat, purchased or obtained solely to be used as dwelling house, includes a service apartment and small office home office (SOHO) for which the property developer has obtained an approval for Housing Developers Licensed and Advertising and Sales Permit under HDA 1966
only applicable to Malaysian citizen or a co-purchasers who are a Malaysian Citizens. This means both co-purchasers have to be Malaysian Citizen.
Stamp Duty Exemption for Loan Agreement under i-Miliki [Developer's Unit]
[P.U.A 176/2023] | [Updated 09.06.2023]
On 09.06.2023, the government has published under the Government Gazette the P.U.(A) 176/2023, Stamp Duty (Exemption) Order 2023 which allows for exemption of any stamp duty payable on loan agreement for the purchase of a residential property through the Malaysian Home Ownership Initiative (i-Miliki) ["Malaysian Home Ownership Initiative"]. The criteria are as follow:
(i) value of a residential property not more than RM500,000 executed between individual and developer;
(ii) the purchase price under sale and purchase agreement is a price after discount of at least 10% per cent from the original price offered by the property developer;
(iii) the execution has to take place on or after 01.06.2022 and not later than 31.12.2023, and the sale and purchase agreement has to be stamped by 31.01.2024; and
(iv) individual (buyer) is first time home buyer; never inherit any property either jointly or individually
the definition of "residential property" means house, a condominium unit, an apartment or a flat, purchased or obtained solely to be used as dwelling house, includes a service apartment and small office home office (SOHO) for which the property developer has obtained an approval for Housing Developers Licensed and Advertising and Sales Permit under HDA 1966
only applicable to Malaysian citizen or a co-purchasers who are a Malaysian Citizens. This means both co-purchasers have to be Malaysian Citizen.
Stamp Duty for Transfer of Title (Normal Transaction)
The formula for calculating the stamp duty rate for the transfer of property in Malaysia:
Stamp duty = (Property value ÷ 100) x Rate
The rate of stamp duty depends on the value of the property being transferred and ranges from 1% to 4%:
- Property value of up to RM 100,000: Stamp duty rate is 1%
- Property value between RM 100,001 to RM 500,000: Stamp duty rate is 2%
- Property value between RM 500,001 to RM 1,000,000: Stamp duty rate is 3%
- Property value above RM 1,000,000: Stamp duty rate is 4%
It's important to note that there are also other factors that can affect the stamp duty rate, such as whether the property is located in a state with higher stamp duty rates or whether it is a first-time homebuyer transaction, which may qualify for stamp duty exemptions or discounts.
An example will be a property with RM1.2million purchase price, the calculation will be as follow:
- First RM100,000 x 1% = RM1,000
- Next RM400,000 x 2% = RM8,000
- Next RM500,000 x 3% = RM15,000
- Next RM200,000 x 4% = RM8,000
[see section 4 read together with First Schedule, Item 32 of the Stamp Act 1949]
Stamp Duty Exemption for Transfer of Title for Property below RM500,000 [Subsale's Unit]
The Purchaser buying a property below RM500,000 is entitled for full stamp duty exemption provided that :
- If the sale and purchase agreement is signed between the date of 01.01.2021 to 31.12.2025
- Only applies to residential property
- the buyer never owned any property or inherit any property either jointly or individually
- the buyer has to execute a statutory declaration
- this exemption does not apply to foreigner or Malaysia who taken foreigner citizenship (Malaysian turn Singaporean). Malaysia who hold Singaporean Permanent Residency Status, and has yet to give up Malaysia citizenship may apply for this exemption.
If co-purchaser has already owned a property, then the co-purchaser is not entitled for the stamp duty exemption. The Property will still be taxed for 50% stamp duty and RM10 nominal stamp duty for the other first time home buyer co-purchaser.
[see Stamp Duty (Exemption) Order 2021 PU(A) 53/2021]
Stamp Duty on Loan Documentation [Normal Transaction]
For those non first-time home buyer, you may need to pay the full stamp duty imposed on the loan documentation.
For stamp duty rate on loan documentation, the formula is:
Loan sum x 0.5%
RM500,000 x 0.5% = RM2,500
Stamp duty Exemption on Loan Documentation
Any first-time home buyer who purchases a property by borrowing a loan of not more than RM500,000 is entitled for full stamp duty on the loan documentation provided that:
- loan sum not exceeding RM500,000
- loan is granted by bank licensed under the Financial Services Act 2013 & etc
- If the sale and purchase agreement is signed between the date of 01.01.2021 to 31.12.2025
- The individual never owned or inherit any property either jointly or individually
- Only applies to Malaysian
[see Stamp Duty (Exemption) (No. 2) Order 2021 PU(A) 54/2021]
Stamp Duty for 1st time Home buyer for property below RM500,000
For 1st time home buyer purchasing property below RM500,000, he is entitled for 100% full stamp duty exemption provided that:
- sale and purchase agreement executed between 01.01.2021 and not exceeding 31.12.2025;
- has never own any residential property by way of inheritance or gift
- applicant has to declare in a statutory declaration being a 1st time home buyer
[see Stamp Duty (Exemption) Order 2021 PU(A) 53/2021] – for MOT
[see Stamp Duty (Exemption) Order 2021 PU(A) 54/2021] – for loan agreement
Stamp Duty applicable on the transfer from parent to children
The law as it stands for transfer of property from parent to children will still attracts 50% stamp duty from the total assessable stamp duty payable.
The latest announcement via Budget 2023 on stamp duty transfer of property via love and affection (which includes grandparent transferring property to grandchildren) which allows for 100% exemption for the 1st RM1 million has yet to see any law being published at the government gazette. Therefore, PUA 369/2019 still stands as of today.
[see Stamp Duty (Remission) (No. 2) Order 2019 PU(A) 369/2019]
Stamp Duty for the transfer among spouses/ husband to wife
For Husband transferring property to wife, and vice versa, the stamp duty is exempted 100% whereby only a nominal RM10 needs to be paid to the Stamp Office.
[see Stamp Duty (Exemption) (No. 10) Order 2007 PU(A) 420/2007]
Stamp Duty for the transfer of Property among siblings
For sibling, there is no stamp duty exemption given under the law, therefore sibling has to pay full stamp duty.
Stamp Duty for residential property purchased under House Ownership Campaign (HOC)
Stamp Duty (Exemption) (No. 3) Order 2020 [P.U.(A) 216]
Stamp duty for loan is fully exempted for property purchased under the HOC Campaign. The criteria are as follow:
- Property valued from RM300,000 to RM2.5million
- SPA signed between developer and buyer (primary market)
- The property must have discounted 10% from its original price
- SPA executed between 01.06.2020 and not later than 31.05.2021
- The project must be registered with REHDA/SHAREDA or SHEDA
Stamp Duty (Exemption) (No. 4) Order 2020 [P.U.(A) 217]
Stamp duty for transfer of property (transfer by Memorandum of Transfer) is fully exempted for property purchased under the HOC Campaign. The criteria are as follow:
- Property valued from RM300,000 to RM2.5million
- SPA signed between developer and buyer (primary market)
- The property must have discounted 10% from its original price
- SPA executed between 01.06.2020 and not later than 31.05.2021
- The project must be registered with REHDA/SHAREDA or SHEDA
Stamp Duty payable for the transfer by way of Probate
Stamp Duty payable for probate is RM10 under item 32(i)
[see item 32(i) of the First Schedule, of Stamp Act 1949 (Act 378)]
Stamp Duty payable for deceased's property sold to third party purchaser under an Order for Sale
Stamp Duty payable follows the full stamp duty formula as per a normal transfer of property
[see item 32(a) of the First Schedule, of Stamp Act 1949 (Act 378)]
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