New Exemptions On Stamp Duty And Real Property Gains Tax To Boost Malaysian Property Market.

18 August 2020
 

The COVID-19 pandemic has significantly weakened economic growth in Malaysia. In continuing its efforts to save Malaysia, the Government unveiled Pelan Jana Semula Ekonomi Negara or the National Economic Recovery Plan (PENJANA) which contains 40 initiatives strategically designed to propel the nation’s economic growth. In order to boost the real estate sector, PENJANA reintroduced the Home Ownership Campaign (by granting stamp duty exemption on instruments of transfer and loan agreements for acquisitions of residential properties priced between RM300,000 and RM2.5 million) and introduced the Real Property Gains Tax exemption.
 
In connection with these initiatives, the Government gazetted the Stamp Duty Exemption (No. 3) Order 2020, Stamp Duty Exemption (No. 4) Order 2020 and Real Property Gains Tax (Exemption) Order 2020 on 28 July 2020 with retrospective effect from 1 June 2020. This article will discuss the initiatives provided to the real estate sector and the steps to be taken to qualify for such exemptions.