Remission / Exemption of Stamp Duty on Purchase of Property

04 January 2019

The following Orders were gazetted under the Stamp Act 1949 (‘the Act’) on 31 December 2018 to remit or exempt the stamp duty payable on an instrument of transfer relating to the purchase of property.
 
Stamp Duty (Remission) (No. 2) Order 2018

Under this Order, the amount of stamp duty chargeable on an instrument of transfer of property under paragraph 32(a)(iv) of the First Schedule to the Act is remitted by 1% from 4% to 3% for every RM100.00 or fractional part thereof of the money value of the consideration or market value of the property, whichever is greater, which is in excess of RM1,000,000.00, subject to the following conditions being fulfilled –

1. the instrument of transfer is stamped on or after 1 January 2019 but not later than 30 June 2019; and

2. the market value of the property exceeds RM1,000,000.00 but is not more than RM2,500,000.00.

 
Stamp Duty (Exemption) (No.6) Order 2018
 
This Order exempts from stamp duty any instrument of transfer executed in relation to the purchase of one unit of residential property having a market value not exceeding RM300,000,00 by an individual, subject to the following conditions being fulfilled –

1. the sale and purchase agreement for the purchase of the property is executed on or after 1 January 2019 but not later than 31 December 2020;

2. the individual has never owned any residential property including one which is obtained by inheritance or gift, whether held individually or jointly; and

3. the application for exemption is supported by a statutory declaration by the individual confirming the matters referred to in paragraph (b) above.

 
Stamp Duty (Exemption) (No.7) Order 2018
 
This Order exempts from stamp duty any instrument of transfer executed in relation to the purchase of one unit of residential property having a market value exceeding RM300,000,00 but is not more than RM1,000,000.00 by an individual, subject to the following conditions being fulfilled –

1. the sale and purchase agreement for the purchase of the property is executed on or after 1 January 2019 but not later than 30 June 2019;

2. the sale and purchase agreement is between the individual and a property developer;

3. the individual has never owned any residential property including one which is obtained by inheritance or gift, whether held individually or jointly; and

4. the application for exemption is supported by a statutory declaration by the individual confirming the matters referred to in paragraph (c) above.

For the purposes of Stamp Duty (Exemption) (No.6) Order and Stamp Duty (Exemption) (No.7) Order 2018 –

1. ‘individual’ means a purchaser or co-purchaser who is a Malaysian citizen; and

2. ‘residential property’ means a house, a condominium unit, an apartment or a flat purchased or obtained solely to be used as a dwelling house.

The three Orders referred to above are deemed to have come into operation on 1 January 2019.
 
Comments

1. It is arguable that Stamp Duty (Remission) (No. 2) Order 2018 may apply to the transfer of property other than landed property, for example an assignment of book debts, and to non-residential property.

2. To qualify for the exemption under Stamp Duty (Exemption) (No.7) Order 2018, the residential property must be purchased from a property developer but this requirement does not apply to an exemption under Stamp Duty (Exemption) (No.6) Order 2018.

3. The exemptions under Stamp Duty (Exemption) (No.6) Order 2018 and Stamp Duty (Exemption) (No.7) Order 2018 only apply where a purchaser or co-purchaser is an individual who is a Malaysian citizen. As Stamp Duty (Remission) (No. 2) Order 2018 does not contain the aforesaid requirements, it is arguable that the remission order is applicable where a purchaser is not an individual or a Malaysian citizen.