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Stamp Duty exemption can be considered a significant relief for all parties involved in property transactions, as it not only streamlines the process but also leads to potential cost savings.

Stamp Duty is a crucial consideration for individuals looking to purchase or transfer property rights. Let's see in details:

 

 

 

What is Stamp Duty?

Stamp Duty is a tax imposed on legal documents such as sale and purchase agreements, property ownership transfers, home loans, or loan agreements. In simpler terms, it's akin to a tax on various essential documents in real estate, including agreements for home sales, property transfers, or loans.

 

Category	Meaning
Fixed Rate	Costs remain fixed, such as stamps for individual policies or copies.
Ad Valorem	Costs vary based on the transaction value, like loan agreements or property transfers.

 

Stamp Duty Rates for Housing in Malaysia

The stamp duty rate for property contracts varies slightly depending on the transaction. For Ad Valorem stamp duty, it's calculated based on the home's price in the sales contract or its market value.

 

 

The stamp duty percentages have been as follows since 2019:

Sale Price	Percentage
First RM100,000	1%
RM100,001 to RM500,000	2%
RM500,001 to RM1 million	3%
More than RM1 million	4%

 

For instance, for a property priced at RM600,000, the calculation would be as follows:

(RM100,000 x 1%) + (RM400,000 x 2%) + (RM100,000x3%)

= RM11,000 (Total Stamp Duty).

 

Stamp Duty Rates for Loan Agreements

Stamp duty is also applied to loan agreements involved in property purchases. The stamp duty cost for loan agreements is fixed at 0.5% and is levied on the total loan amount.

 

 

For example, for a property with a loan of RM550,000, the stamp duty would be calculated as follows:

 

(RM100,000 x 1%) + (RM400,000 x 2%) + (RM100,000x3%) + (RM550,000 x 0.5%)

= RM13,750 (Total Stamp Duty).

 

How to Stamp a Document

Stamping a document can be done at the Inland Revenue Board (LHDN) by filling out a form online or using the 'Digital Franking' application. This streamlines the process, saving time and effort.

Stamp Duty Exemptions for 2024

Stamp duty exemptions present an opportunity for significant savings. Following the end of the Home Ownership Campaign in December 2022, the government introduced new incentives.

 

 

For properties priced below RM500,000, stamp duty is completely exempted until 2025. Additionally, there's a 75% exemption for properties priced between RM500,000 and RM1 million until December 31, 2023.

 

These stamp duty exemptions for 2024 contribute positively to the Malaysian property market, providing opportunities for savings and stimulating property transactions. Ensure you take advantage of these exemptions before they expire. Best of luck in finding your dream home!

 

Related Articles:

• Land Tax: State-wise Tax Rates
• Rental Agreements in Malaysia: All You Need to Know
• 5 Costs You Must Cover When Selling Property in Malaysia