Why you should consider buying a residential property now? (Stamp Duty Exemption).
Malaysia’s New Exemption on Stamp Duty
Under P.U.(A) 53/2021 (“the Order”) which came to effect on 1 January 2021 provides full stamp duty exemption for the purchase of the first residential property by a Malaysian citizen worth up to RM500,000.
The Order exempts from stamp duty all instrument of transfer for the purchase of only one unit of residential property whereby the value of the property is not more that RM500,000.00 and provided:-
- The Sale and Purchase Agreement is signed between 01.01.2021 to 31.12.2025; and
- The Purchaser has never owned any residential property (including a residential property obtained by way of inheritance or gift).
It is also a conditions that the Purchaser must make a Statutory Declaration to the Inland Revenue confirming that the Purchaser has never owned any residential property, including a residential property which is obtained by way of inheritance or gift. [This Statutory Declaration is usually prepared by your lawyer].
Potential Savings on Stamp Duty
To put things in context, Stamp Duty on a RM500,000.00 transaction is RM9,000.00. With the Order (PU(A) 53/2021) the Purchase need not pay RM9,000.00 as stamp duty to the Inland Revenue.