Stamp Duty Order 2023

Stamp Duty Order 2023

Stamp duty relief for first-time home buyers

Malaysian Budget 2023 Speech on 24 February 2023 to encourage home ownership was to grant to first-time home owners full stamp duty exemption for the instrument of transfer and loan agreement for homes valued at RM500,000 and below until end-2025, and 75% stamp duty remission for the instrument of transfer and loan agreement for homes valued from RM500,001 to RM1,000,000 until 31 December 2023.1

Gazetted Order

The following subsidiary legislation in respect of Malaysian Home Ownership Initiative (iMiliki) under the Home Ownership Programme 2022/2023 (‘iMiliki Initiative 2022/2023’) were gazetted on 9 June 2023 to give effect to the foregoing initiatives:

1. Stamp Duty (Exemption) Order 2023 [P.U.(A) 176/2023] (‘E.O. 1/2023’);

2. Stamp Duty (Exemption) (No. 2) Order 2023 [P.U.(A) 177/2023] (‘E.O. 2/2023’);

3. Stamp Duty (Remission) Order 2023 [P.U.(A) 179/2023] (‘R.O. 1/2023’); and

4. Stamp Duty (Remission) (No. 2) Order 2023 [P.U.(A) 180/2023] (‘R.O. 2/2023’).

All of the above-referred subsidiary legislation (‘Orders’) are deemed to have come into operation on 1 June 2023.

The exemptions and remissions

  • E.O. 1/2023 exempts from stamp duty any loan agreement to finance the purchase of a residential property through the iMiliki Initiative 2022/2023, the value of which is not more than RM500,000, executed between an individual named in the sale and purchase agreement for the purchase of a residential property (‘SPA’) and any of the financial institutions listed in sub-paragraphs (1)(a) to (1)(i) of Paragraph 2 of E.O. 1/2023.

  • E.O. 2/2023 exempts from stamp duty any instrument of transfer for the purchase of a residential property through the iMiliki Initiative 2022/2023, the value of which is not more than RM500,000, executed by an individual.

  • R.O. 1/2023 remits 75% of the stamp duty chargeable on any loan agreement to finance the purchase of a residential property through the iMiliki Initiative 2022/2023, the value of which is more than RM500,000 but not more than RM1,000,000, executed between an individual named in the SPA and any of the financial institutions listed in sub-paragraphs (1)(a) to (1)(i) of Paragraph 2 of R.O. 1/2023.

  • R.O. 2/2023 remits 75% of the stamp duty chargeable on any instrument of transfer for the purchase of a residential property through the iMiliki Initiative 2022/2023, the value of which is more than RM500,000 but not more than RM1,000,000, executed by an individual.

Common conditions

The exemptions and remissions under the Orders shall only apply if the following conditions are satisfied:

  • the SPA is between an individual and a property developer;

  • the purchase price in the SPA is a price after a discount of at least 10% from the original price offered by the property developer as approved in the Advertising and Sales Permit under the Housing Development (Control and Licensing) Act 1966, the Housing Development (Control and Licensing) Enactment 1978 of Sabah or Housing Development (Control and Licensing) Ordinance 2013 of Sarawak (severally the ‘relevant housing development law’), except where the residential property is subject to controlled pricing;

  • the SPA is executed on or after 1 June 2022 but not later than 31 December 2023 and is duly stamped no later than 31 January 2024; and

  • the individual has never owned any residential property, including a residential property which is obtained by inheritance or gift, which is held either individually or jointly.

Supporting documents

The application for stamp duty relief under the Orders must be accompanied by a statutory declaration by:

  • the property developer confirming the grant of a discount of at least 10% from the original price offered by the property developer as approved in the Advertising and Sales Permit under the relevant housing development law, except for a residential property which is subject to controlled pricing; and

  • the individual named in the SPA confirming that he or she has never owned any residential property including a residential property which is obtained by way of inheritance or gift, which is held either individually or jointly.

Common terminology

For the purposes of the Orders:

‘individual’ means a purchaser who is a Malaysian citizen or co-purchasers who are Malaysian citizens;

‘residential property’ means a house, condominium unit, an apartment or a flat purchased or obtained solely to be used as a dwelling house and includes a service apartment and small office home office (SOHO) for which the property developer has obtained an approval for a Developer’s Licence and Advertising and Sales Permit under the relevant housing development law,

and for the purposes of E.O. 2/2023 and R.O. 2/2023, the value of the residential property shall be based on the market value.

Source :

Skrine - Stamp duty relief for first-time home buyers gazetted

https://www.skrine.com/insights/alerts/june-2023/stamp-duty-relief-for-first-time-home-buyers-gazet

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