On 8 June 2023, several orders were enacted by the Parliament pertaining to stamp duties.
The summary of those orders is as follows:
STAMP DUTY (EXEMPTION) ORDER 2023 P.U.(A) 176
Effective Date: 1 June 2022.
The Stamp Duty (Exemption) Order 2023 (“the Order”) aims to exempt stamp duty pertaining to any loan agreement used to finance the purchase of a residential property through the Malaysian Home Ownership Initiative (“i-Miliki”). The exemption applies to any loan agreement valued not more than RM500,000.
The exemption is subject to the the following conditions:
- the sale and purchase agreement must be executed between an individual and a property developer;
- the purchase price of the property a price is after a minimum of 10% discount from the original purchase price;
- the sale and purchase agreement is executed on or after 1st June 2022, but no later than 31st December 2023. The sale and purchase agreement is stamped no later than 31st January 2024; and
- it must be by an individual who has never individually or jointly owned any residential property.
STAMP DUTY (EXEMPTION) (NO. 2) ORDER 2023 P.U.(A) 177
Effective Date: 1 June 2022.
The Stamp Duty (Exemption) (No.2) Order 2023 (“the Order (No 2)”) seeks to achieve the above mentioned exemptions as mentioned in the Order subject to the same conditions. The only difference is that the Order (No 2) applies to all instruments of transfer for the purchase of residential property through i-Miliki.
STAMP DUTY (EXEMPTION) (NO. 3) ORDER 2023 P.U.(A) 178
Effective Date: 1 April 2023.
The Stamp Duty (Exemption) (No.3) Order 2023 provides the exemption of stamp duty for instruments of transfer of any immovable property operating as a voluntary disposition inter vivos (while alive).
However, this exemption is only limited to the first RM1 million of the immovable property. Any sum in excess of RM1 million is subject to 50% of stamp duty.
It is important to note that the exemption only applies when:
- the transfer is executed on or after 1st April 2023; and
- the recipient is a Malaysian citizen.
STAMP DUTY (REMISSION) ORDER 2023 P.U.(A) 179
Effective Date: 1 June 2022.
The Stamp Duty (Remission) Order 2023 stipulates that 75% of the stamp duty is remitted on any loan agreement, which is valued at more than RM500,000 but not more than RM1 million to fund the purchase of a residential property through i-Miliki.
The conditions for the remission are the same as the aforementioned four conditions in the Order.
STAMP DUTY (REMISSION) (NO.2) ORDER 2023 P.U.(A) 180
Effectve Date: 1 June 2022.
The Stamp Duty (Remission) (No.2) Order 2023 states that 75% of the stamp duty is remitted on any instrument of transfer, which is valued at more than RM500,000 but not more than RM1 million for the purchase of residential property through i-Miliki.
The conditions for the remission are the same as the aforementioned four conditions in the Order.
For further information, please contact:
Wong Zi Ying, Richard Wee Chambers
ziying@richardweechambers.com
