FAQ – Latest Stamp Duty Exemption Order

A Guide to Property Stamp Duty Exemption for Homebuyers in Malaysia

1. What are the latest stamp duty exemption orders?

   Stamp Duty (Exemption) Order 2021 (P.U.(A) 53/2021)(as attached) in relation to stamp duty exemption on instrument of transfer for purchase of residential property and Stamp Duty (Exemption) Order (No. 2) 2021 (P.U.(A) 54/2021)(as attached) in relation to stamp duty exemption on loan agreement financing the purchase of residential property.

2. What are the requirements?

   1. purchase of residential property which market value not more than RM500,000.00
   2. the individual (i.e. purchaser or co-purchaser of the residential property which is Malaysian citizen) has never owned any residential property, including residential property obtained by way of inheritance or gift, whether individually or jointly
   3. the sale and purchase agreement for the purchase of residential property is executed on or after 1st January 2021 but not later than 31 December 2025

3. What is residential property?

   As pursuant to Stamp Duty (Exemption) Order 2021 (P.U.(A) 53/2021), residential property means a house, a condominium unit, an apartment or a flat obtained or purchased solely for the use as dwelling house. However, do take note that as pursuant to the Statutory Declaration in relation to the application of stamp duty exemption, residential property does not include small office home office (SOHO), small office flexible office (SOFO), small office virtual office (SOVO) and service apartment.

4. How can I know the market value of the residential property?

   After the instrument of transfer being submitted to Inland Revenue Board for adjudication, the market value will be ascertained by Valuation and Property Services Department of Malaysia (Jabatan Penilaian Dan Perkhidmatan Harta

   Malaysia (JPPH Malaysia)) and a Notice of Assessment will be issued by Inland Revenue Board stating the market value of the property and the exact amount of the stamp duty payable. If the market value of the residential property is more than RM500,000.00, then, stamp duty exemption is not applicable.

5. I have owned a residential property by way of inheritance and the same has been sold few years ago. I have not purchased any other property before. Now, I wish to buy a condominium unit which purchase price is RM400,000.00 for the very first time. Am I eligible for stamp duty exemption?

   No, you are not eligible for stamp duty exemption as you have owned a residential property by way of inheritance, even if it is sold.

6. I am purchasing a double storey in joint name. I am not eligible for the stamp duty exemption but my co-purchaser has never owned any residential property before, is she eligible to apply for stamp duty exemption?

   If the co-purchaser has never owned any residential property, she is eligible to apply for stamp duty exemption for her half undivided share of the property.

7. I would like to purchase a service apartment (purchase price RM350,000.00). This is my first time purchasing a property and I have never owned any residential property. Am I eligible for stamp duty exemption?

   In the Statutory Declaration in relation to the stamp duty exemption application, it states that residential property does not include service apartment, and this Statutory Declaration has to be submitted together with the stamp duty exemption application after it has been executed by the individual and affirmed by Commissioner for Oath. As such, even if the Stamp Duty (Exemption) Order 2021 (P.U.(A) 53/2021) does not specifically state that service apartment is not a residential property, the Statutory Declaration has clearly stated so. As such, if one proceed with the stamp duty exemption application, the Inland Revenue Board has sole discretion to disapprove the application.

Click Here for STAMP DUTY (EXEMPTION) ORDER 2021 & STAMP DUTY (EXEMPTION) (NO. 2) ORDER 2021

This article is written by 

Liew Chen Siang
Partners, Low & Partners

Yap Yie Laine
Senior Associate, Low & Partners