How To Calculate Stamp Duty ? Stamp Duty Waiver For First-Time House Buyer
In this few years, looking for a place called home can be challenging but that about to change.
Next year, first-time house buyer will enjoy multiple exemptions in Stamp Duty from buying the first home. Thanks to the new Malaysian Government.
Are you excited yet? I know I am.
Regardless of which, we want you to prepare for the stamp duty information. Just in case, if you need to grab that dream property that you’ve been saving for years. ??
” THE BEST TIME TO BUY A HOME IS ALWAYS FIVE YEARS AGO”
HOW TO CALCULATE STAMP DUTY?
Here is the stamp duty scale.
2024 STAMP DUTY SCALE
Stamp duty Fee 1% : For First RM100,000
Stamp duty Fee 2% : RM100,001 To RM500,000
Stamp duty Fee 3% : RM500,001 and RM1,000,000
Stamp duty Fee 4% : >RM1,000,000
We will show how simple the calculation for easy understanding.
For example, if you’re buying a house amounting RM300,000. The total stamp duty is :-
Stamp duty Fee 1% : For First RM100,000 = RM1000.00
Stamp duty Fee 2% : RM100,001 To RM300,000 = RM4,000.00
Total stamp duty is RM5,000.00
In a Sale and Purchase Legal Fees Quotation, Stamp duty will be part of the quotation. Other items will be the Professional fees, SST and disbursement fees.
Based on this case the breakdown as below:
Professional Legal Fees: RM3000
Stamp Duty: RM5000 *
Disbursement fees: RM1500-RM2000
6% SST: RM180
Total amount: RM9680 – RM10,180
* If you’re first-time house buyer, you’ll get exemption of RM5000.
That’s a huge saving!
Good news for First-Time House Buyer! Woohoo!
With the generosity of the Malaysian Government and to increase the purchasing house for first-time house buyer, the government had implemented a stamp duty exemption started 1st January 2021 until 31st December 2025. (based on budget 2021)
Criteria For First-Time House Buyer Stamp Duty Waiver:
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Must be first-time house buyer. Never buy a house before and never inherited any property.
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The Property Price must be less than RM500,000, if purchased between 1st January 2021 to 31st December 2025.
Wow! Does it mean if a first-time house buyer purchases a house below RM500,000 they don’t need to pay Stamp Duty?
Now, we’re going to give you a second example.
Let’s said, using the same example, based on RM300,000 purchase price.
Stamp duty Fee 1% : For First RM100,000 = RM1000.00
Stamp duty Fee 2% : RM100,001 To RM300,000 = RM4,000.00
Total stamp duty is RM5,000.00
Due to, for first-time house buyer there is an exemption of Stamp Duty for property RM500,000 & below, therefore you’re not required to pay anything.
More Good News!
Stamp Duty Exemption For Loan Agreement Stamp Duty!!
Yes, not only the exemption applies to Property transfer stamp duty but also to Loan Agreement Stamp Duty. Is that good or what!! ?
How To Calculate Loan Agreement Stamp Duty?
It’s quite simple to calculate Loan Agreement Stamp Duty. There are no scale fees, it’s a flat rate of 0.50% from the Total Loan Amount.
For Example,
If the loan amount is RM500,000.
The Loan Agreement Stamp Duty will be RM500,000 x 0.50% = RM2500.00
And if you’re first-time house buyer, this RM2500 will be exempted. Meaning, you’ll pay ZERO!! ?
Request A Free Quotation From Us Today
Quotation For
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SALE AND PURCHASE AGREEMENT MALAYSIA
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LOAN AGREEMENT MALAYSIA
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TRANSFER OF PROPERTY MALAYSIA
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TRANSFER OF PROPERTY BY LOVE AND AFFECTION MALAYSIA
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SELLER QUOTATION FOR SUB SALE PROPERTY MALAYSIA
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Hi,are you absolutely sure the stamp duty waiver for first home buyer for up till 1million will start from 1/1/19? I know it is announced in budget 2019 but until now LHDN still claim they have not received any formal circular informing them yet. Even if the policy is in place, will it really starts from 1/1/19? I am really in a dilemma now. It is a 20k+ difference.
1. Can 2 first time home buyer joint name and qualify for the exempted stamp duty?
2. Is a first time commercial property owner qualify as a first time home owner if he has never bought a residential property before?
Hi. If i buy property price 450k SUBSALE first timer. Am I entitle for the exemption of stamp duty?
This year there is two stamp duty exemption for a first-time house buyer.
The difference between these two exemptions is the property price.
The first exemption.
1. If you buy a house and stamp the Sale and Purchase Agreement between 1st January 2019 to 30th June 2019
2. Property price or property market value must be below RM300,000.
If exceeded, you’re not entitled.
Please do take note that if your property price is RM300,000 and Property value is RM350,000. You will not entitle for the first exemption.
The second exemption.
1. If you buy a house and stamp the Sale and Purchase Agreement between 1st July 2019 to 30th December 2020.
2. Property price or property market value must be below RM500,000.
If exceeded, you’re not entitled.
And if your property price is RM500,000 and Property value is RM550,000. You will not entitle for the second exemption.
So, back to your question.
It will depend on when do you purchase the property.
If you buy before 30th June 2019, you’re not entitled.
If you buy it after 1st July 2019, then you’re entitled.
Even though you’re entitled, you are required to apply for the exemption. Therefore, please remind your lawyer to make the necessary submission to the stamp office.
So, we hope this is helpful to you.
Thanks.
Melissa Lee / David
Online Mortgage Consultant
012-6946746
http://www.malaysiahousingloan.net
1) I brought a property since last year December, and i am a first time buyer. Am i qualify to apply the stamp duty exemption?
2) If yes, what should i do & where can i apply this?
Hi, Thanks for your questions.
If you bought a property in the Year 2018, you should refer to 2018 Stamp Duty Exemption for a first-time house buyer.
Stamp Duty Exemption Link: http://www.hasil.gov.my/bt_goindex.php?bt_kump=5&bt_skum=5&bt_posi=1&bt_unit=1&bt_sequ=8
* Click Tahun 2016 – Perintah Duti Setem (Peremitan)
( For the Year 2017 & 2018 Stamp Duty Exemption)
I assume you have signed and stamped the Sale and Purchase Agreement latest by 31st December 2018.
If you do, according to the 2018 Stamp Duty exemption criteria.
The property price or property market value must be below RM500,000. If exceeded, you’re not entitled.
For example, if your property price is RM500,000 and Property value is RM550,000. You will not entitle for the exemption.
The stamp duty exemption is for the first RM300,000 of the stamp duty, or max RM5000.
Another important note is to inform your SNP lawyer to apply for your Stamp Duty Exemption.
You are required to fill and sign a “Surat Akuan.” And your lawyer should submit it for you. If you don’t apply for the stamp duty exemption, you’ll not get it. So, talk to your lawyer.
Thanks.
Melissa Lee?
Online Mortgage Consultant
012-6946746 (David)
http://www.malaysiahousingloan.net