STAMP DUTY ON TRANSFER OF PROPERTY AND LOAN AS AT JANUARY, 2019

Pursuant to the Stamp Act 1949, as amended by the Finance Act 2018 which came into effect from 01.01.2019. The rate of stamp duty , effective from 01.01.2019 payable for transfer of properties in Malaysia is calculated as follows:

Note: In cases without monetary consideration (i.e. by way of gift or love and affection or payment in kind ), it will be based on JPPH valuation .

List of Stamp Duty Exemptions:

Property Less than RM300,000.00:

Stamp Duty (Exemption) (No. 6) Order 2018 (P.U. (A) 377) all stamp duty chargeable for transfer of property worth not more than RM300,000 .00 is remitted.

Conditions:-

• Residential property;
• Only one (1) unit;
• Property market value is not more than RM300,000.00;
• Sale and Purchase Agreement is signed and dated between 01.01.2019 until 31.12.2020;
• First residential property (individual has never owned any residential property including such property obtained by way of inheritance or gift; and
• Malaysia citizen

Stamp Duty (Exemption) (No. 4) Order 2018 (P.U. (A) 321) – all stamp duty chargeable for loan agreement to finance the purchase of property worth not more than RM300,000.00 is remitted.

Conditions as per conditions set for transfer of property.

Property valued between RM300,000.00 to RM1,000,000.00:-

Stamp Duty (Exemption) (No. 7) Order 2018 (P.U. (A) 378) – all stamp duty chargeable for transfer of property worth in between RM300,000.00 to RM1,000,000.00 is remitted.

Conditions:-

• Residential property;
• Only one (1) unit;
• Property market value between RM300,000.00 to RM1,000,000.00;
• Sale and Purchase Agreement is signed and dated between 01.01.2019 until 30.06.2019;
• First residential property (individual has never owned any residential property including such property obtained by way of inheritance or gift; and
• Direct purchase from developer

Stamp Duty (Remission) Order 2019 (P.U. (A) 49) – RM5,000 of stamp duty chargeable for transfer of property worth in between RM300,000.00 to RM500,000.00 is remitted.

Conditions:-

• Residential property;
• Only one (1) unit;
• Property market value between RM300,000.00 to RM500,000.00;
• Sale and Purchase Agreement is signed and dated between 01.07.2019 until 31.12.2020; and
• First residential property (individual has never owned any residential property including such property obtained by way of inheritance or gift

Stamp Duty (Remission) Order 2018 (P.U. (A) 320) – RM1,500.00 of the stamp duty chargeable on any loan agreement to finance the purchase of property worth in between RM300,000.00 to RM500,000.00 is remitted.

Conditions:-

• Residential property;
• Only one (1) unit;
• Property market value between RM300,00 0.00 to RM5 00,000.00;
• First residential property (individual has never owned any residential property including such property obtained by way of inheritance or gift; and
• Sale and Purchase Agreement is signed and dated between 01.07.2019 until 31.12.2020.

Property valued between RM1,000,000.00 to RM2,500,000.00:-

Stamp Duty (Remission) (No. 2) Order 2018 (P.U. (A) 376) – 1% of stamp duty chargeable for transfer of property worth in between RM1,000,000.00 to RM2,500,000.00 is remitted.

Meaning, the stamp duty for the value of the property in excess of RM1,000,000.00 until RM2,500,000.00 is maintained at 3%.

Conditions:-

• Property market value between RM1,000,000.00 to RM2,500,000.00; and
• Instrument of transfer (MoT/DoA) is stamped between 01.01.2019 until 30.06.2019;

TRANSFER BETWEEN PARENT AND CHILD, AND SPOUSES

Stamp Duty (Remission) (No. 7) Order 2002 (P.U. (A) 434) – 50% of stamp duty chargeable on any instrument of transfer of immovable property is remitted, and order in effect from 01.01.2003

Conditions:-

• between parent and child; or
• between spouses (superseded by Stamp Duty (Exemption) (No. 10) Order 2007 (P.U. (A) 420);

Stamp Duty (Exemption) (No. 10) Order 2007 (P.U. (A) 420) – full stamp duty is remitted, and order in effect since 08.09.2007.

Conditions:-

• between spouses

CONDITIONS FOR PURPOSE OF STAMP DUTY EXEMPTION

Exemption Period

• Pursuant to to Stamp Duty (Exemption) (No. 2) Order 2019 gazetted vide P.U. (A) 81 and Stamp Duty (Exemption) (No. 3) Order 2019 gazetted vide P.U. (A) 82, stamp duty exemptions are given for residential properties which are sold during the period between 01.01.2019 to 31.12.2019.

Eligibility

• Subject property must be “residential properties” – ie. houses, condominium units, apartments and flats including service apartments built and used as dwelling houses – with valid Developer’s Licence (DL) and Advertisement and Sale Permit (AP) or CCC (where applicable), all other property types are not included in this exercise;
• In case of service apartment, it must be for residential use only and cannot be converted for commercial activities;
• Property price is between RM300,001.00 to RM2,000,000.00 (before discount);
• It must be a sale from a developer to a purchaser or co-purchasers, all of whom are Malaysian citizens (individual);
• Sale & Purchase Agreement must be executed between 01.01.2019 to 31.12.2019;
• A minimum of 10% discount (from selling price) is given by the developer to all units that are not subjected to government price control.
• Properties in Peninsular Malaysia must be registered with REHDA / SHAREDA / SHEDA respectively;

Stamp duty remittance:-

Instrument of Transfer

Residential Property Price	Stamp Duty Rate (01.01.2019 – 31.12.2019)
First RM100,000.00	Remitted
Subsequent RM400,000.00 (RM100,000.01 to RM500,000.00)	Remitted
Subsequent RM500,000.00 (RM500,000.01 to RM1,000,000.00)	Remitted
Subsequent RM1,500,000.00 (RM1,000,000.01 to RM2,500,000.00)	3%

Loan Agreements

Residential Property Price	Stamp Duty Rate (01.01.2019 – 31.12.2019)
Up to RM2,500,000.00	Remitted