Most Common Stamp Duty Waiver Applicable in Malaysia as in October 2022
1. First Time Home Buyer
| Exemption Order | Type of Instrument that can be Waived from Stamp Duty |
|---|---|
| P.U. (A) 53 | Memorandum of Transfer |
| P.U. (A) 54 | Facility Agreement |
• Applicable to First Time Buyer (the individual does not possess any property under his/her name, whether by inheritance or any other methods).
• Purchaser is a Malaysian.
• Purchase price of the property does not more than RM500,000.00.
• The property shall be a residential property (small office home office (SOHO), small office flexible office (SOFO), small office virtual office (SOVO) & service apartment does not consider as a residential property hence will not be entitled for P.U. (A) 53).
• The Sale and Purchase Agreement is executed on or after 01/01/2021 and not later than 31/12/2025.
2. Transfer by way of Love and Affection
| Between | Exception Rate | Remission/Exemption Order |
|---|---|---|
| Husband & Wife | 100% | P.U. (A) 420 |
| Parents & Child | 50% | P.U. (A) 369 |
• Stamp duty remission for the transfer between parents and child is only applicable subject to the recipient is a Malaysian.
• To interpret the definition of child under P.U. (A) 369, a child means a legitimate child, stepchild or child adopted in accordance with any law.
• Transfer between grandparents and grandchildren or transfer between siblings are not entitled for stamp duty exemption.
If you have any questions or require any additional information, please contact our lawyer that you usually deal with.
This article is written by
Yeo Soo Peng
Partner, Low & Partners
Chloe Yong Chi Yhin
Legal Associate, Low & Partners
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