GOOD NEWS: Stamp Duty Waiver for Transfer of Property between Family Members
Have you ever thought of transferring your property during your lifetime to your family members?
If you’ve been worried about legal costs and stamp duty associated with transferring your property to your family members, there’s good news, our government has recently announced a stamp duty waiver.
How much do you save if you transfer the properties now?
The greater the value of your property, the greater your potential savings.
Before 2023, stamp duty is calculated on the following basis depending on your property value
| Property Value | |
|---|---|
| First RM100,000 | 1% |
| Next RM400,000 | 2% |
| Next RM500,000 | 3% |
| Thereafter | 4% |
– Instead of the high stamp duty costs above, starting 1/4/2023, all property transfers (limited to the first 1 million) based on love & affection for the following family categories will waived:
- Between Spouse
- Between parents & children
- Between grandparents & grandchildren
Illustration of the stamp duty saving
Example 1: A condominium with market value of RM500,000.00.
| Transfer between: | Stamp Duty Before 1/4/2023 | Stamp Duty Waiver starting from 1/4/2023 | Total Savings |
|---|---|---|---|
| Spouse | Free | Free | – |
| Parents & Children | RM4,500.00 | Free | RM 4,500.00 |
| Grandparents & Grandchildren | RM9,000.00 | Free | RM9,000.00 |
Example 2:A terrace house with market value of RM1,000,000.00.
| Transfer between: | Stamp Duty Before 1/4/2023 | Stamp Duty Waiver starting from 1/4/2023 | Total Savings |
|---|---|---|---|
| Spouse | Free | Free | – |
| Parents & Children | RM12,000.00 | Free | RM12,000.00 |
| Grandparents & Grandchildren | RM24,000.00 | Free | RM24,000.00 |
Example 3: A bungalow with market value of RM1,500,000.00.
| Transfer between: | Stamp Duty Before 1/4/2023 | Stamp Duty Waiver starting from 1/4/2023 | Total Savings |
|---|---|---|---|
| Spouse | Free | Free | – |
| Parents & Children | RM22,000.00 | Only RM 10,000 is payable Formula: Free for first one million The balance of Rm 500,000/= value will be subjected to 4% with 50% remission as follows: RM 500,000 x 4% x 50% = Rm 10,000 |
RM12,000.00 |
| Grandparents & Grandchildren | RM44,000.00 | RM34,000.00 |
How long is the validity of the stamp duty waiver?
This stamp duty waiver was first announced in Budget 2023. Any property transaction after 1/4/2023 will be entitled to the waiver. However, this waiver may be terminated by the government in the next budget announcement. As such, it’s advisable for you to start appointing lawyers to prepare the transfer documents if you wish to enjoy the above great savings.
What you should do now?
– Decide if you wish to enjoy this special stamp duty waiver opportunity and transfer your properties to your loved ones.
– Contact us to know how you can enjoy this stamp duty waiver benefits.
Disclaimer: The information contained in this article is provided solely for general interest and therefore should not be relied upon or construed as legal advice.
If you have any questions or require any additional information, please contact our lawyer that you usually deal with.