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Stamp Duty & RPGT Exemption

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Under Penjana, Stamp Duty & RPGT will be exempted when a residential property is transferred. What is the requirements to have this exemption?

Stamp Duty

1. What can be exempted?

Under the HOC, the stamp duty on Loan Agreement & Purchase of Residential Property can be waived.

2. How much can be exempted?

  • Loan Agreement: 100%
  • Purchase of Resident Property: First 1,000,000 or lower (If value of the residential property exceed RM1,000,000, it will be charged RM3 stamp duty for every RM100)

3. What is the requirement?

  • Only for Residential Property
  • Buyer must be Malaysian
  • Purchase under personal name
  • SPA signed between 01.06.2020 to 31.05.2021
  • at least 10% discount must be provided

Real Property Gains Tax (RPGT)

1. Is the disposal of commercial property such as Hotels eligible for RPGT exemption?

No, RPGT exemption is given for the disposal of residential property, such as:

  • Houses
  • Condominium
  • Apartment / Flats
  • Service Apartment
  • SOHO

2. I bought a house in July, can it be exempted?

Can, sell or buy a property between 01.06.2020 to 31.12.2021 will be exempted RPGT.

3. If I sell all my 5 properties together, can all the five properties be exempted for RPGT?

No, RPGT exemption only limited to disposal of 3 properties, if you sell more than 3 properties at one time, you may choose any 3 of the properties to exempt for RPGT.

4. Can I transfer the property to my children? Is it eligible for the exemption?

No, RPGT exemption is not eligible if the transfer involves the follow:

  • Transfer between spouse
  • Gifts between spouses, parents and children, grandparents and grandchildren are given by Malaysian citizens

5. Am I eligible for RPGT exemption if my contract dated June 2020?

Yes, the Agreement for Sale and Purchase must be done between 01.06.2020 to 31.12 2021 and stamping no later than 31.01.2022.

6. If I don't have an agreement for sale and purchase, is there anything I should pay attention to?

Your disposal documents must be done between 01.06.2020 to 31.12 2021 and stamping no later than 31.01.2022.

7. What if my contract needs government seal?

You need to ensure that government approval is obtained after 01.06.2020, and that your contract is done between 01.06.2020 to 31.12.2021, and the date of stamping is not later than 31.01.2022.