Stamp Duty Calculation Malaysia 2022 And Stamp Duty Malaysia Exemption

The ultimate guide to understanding stamp duty calculation Malaysia 2022 and to get Stamp Duty Malaysia Exemption for the first time in your life.

It’s literally taken us two days to complete this article – Stamp Duty Calculation Malaysia 2022 And Stamp Duty Malaysia Exemption and researching all the material for you guys. We know this is so important to you guys and we hope you’ll find it beneficial.

On that note, we try to make it so simple for you to read, absorb, and please use it wisely.

Before we dive into the Stamp Duty Calculation & Stamp Duty Malaysia Exemption, let’s get into the core of stamp duty.

What is Stamp Duty for a house?

In Malaysia, Stamp duty is a tax levied on a variety of written instruments specifies in the First Schedule of Stamp Duty Act 1949. In general term, stamp duty will be imposed on legal, commercial, and financial instruments.

For instance, when you’re buying a house, it will appear in your Sale and Purchase Agreement (SPA) and Loan Agreement (LA).

Who pays property Stamp Duty?

It is always the home buyer (Purchaser) who pays stamp duty, not the seller.

You will pay the stamp duty to the lawyer, and your lawyer will pay it on your behalf as part of the purchase process to the stamp duty office.

When do you need to pay Stamp Duty?

Typically, you will forward your payment during the signing of the Sale and Purchase Agreement or Loan Agreement to your lawyer.

Do you pay stamp duty when buying a house?

Yes, of course, everyone does have to pay stamp duty when buying a house.

Why do you we need to pay Stamp Duty?

Stamp Duty is revenue to the state and the federal government to run or operate the state or our country. As such, the government has made it a compulsory tax-paying when buying or transferring a house in Malaysia.

stamp duty calculation and stamp duty exemption

How is the Stamp Duty Calculated?

When buying a house in Malaysia, everyone is required to pay for Property Stamp Duty.

Stamp Duty Calculation Malaysia 2022

The Property Stamp Duty scale is as follow.

For the first RM100,000, 1%

From RM100,001 to RM500,000, 2%

From RM500,001 to RM1mio, 3%

The subsequent amount is 4%

Stamp Duty is calculated based on the property valued by the Stamp duty Office or Sale and Purchase Agreement Price, whichever is higher.

In fact, many believe it should be based on Sale and Purchase Agreement Price. Sadly it’s not.

I know what you’re thinking.

You think that if the property valued at RM1million, you can have special arrangements with the seller to put on the Sale and Purchase Agreement based on a lower price, maybe RM800,000.

The RM200,000 difference, you’ll have another arrangement paying the seller under the table. This way, you can save on the stamp duty.

Well. Sorry to break the bubble. It’s not going to work.

You’re still required to pay RM1million stamp duty.

For instance,

If the property purchase price is RM500,000 and the property valued is RM550,000, you’ll pay RM550,000 stamp duty NOT RM500,000.

Because it based on whichever is higher between the property purchase price and property valued.

Another example,

If the property purchase price is RM400,000 and the property valued is RM350,000, you’ll pay RM400,000 stamp duty NOT RM350,000.

Because it based on whichever is higher between the property purchase price and property valued.

How much is the Stamp Duty?

Ah. We realized that even though Property Stamp Duty scale is given, but most people still not sure on the calculation.

Afraid not. We’re going to teach you today.

Example 1,

The property Purchase Price is RM500,000.

For the first RM100,000, 1% : RM100,000 x 1% = RM1000

From RM100,001 to RM500,000, 2% = RM400,000 x 2% = RM8,000

Total Stamp Duty Payable is RM9000

Example 2,

The property Purchase Price is RM1,000,000.

For the first RM100,000, 1% : RM100,000 x 1% = RM1000

From RM100,001 to RM500,000, 2% : RM400,000 x 2% = RM8,000

From RM500,001 to RM1mio, 3% : RM500,000 x 3% = RM15,000

Total Stamp Duty Payable is RM24,000

Example 3,

The property Purchase Price is RM1,500,000.

For the first RM100,000, 1% : RM100,000 x 1% : RM1000

From RM100,001 to RM500,000, 2% : RM400,000 x 2% = RM8,000

From RM500,001 to RM1mio, 3% : RM500,000 x 3% = RM15,000

The subsequent amount is 4% : RM500,000 x 4% = RM20,000

Total Stamp Duty Payable is RM44,000

stamp duty calculation malaysia 2019

How much is the stamp duty on a 300,000 house?

Stamp Duty for a house value RM300,000 is RM5000.

The property Purchase Price is RM300,000.

For the first RM100,000, 1% : RM100,000 x 1% = RM1000

From RM100,001 to RM500,000, 2% = RM200,000 x 2% = RM4,000

Total Stamp Duty Payable is RM5000

Stamp Duty Malaysia Exemption

Stamp duty exemption is when you are exempted from paying stamp duty for buying a house or transfer a property to another person.

What are the Criteria to get Stamp Duty Exemption?

There are a few Stamp Duty Exemption for the year 20. We’re going to list out a few stamp duty exemptions.

Stamp Duty Exemption 2022 For Subsales or Under Construction Property

  • Must be a first-time house buyer.
  • You never own or inherited a house.
  • A completed house with a residential land title. Subsales house.
  • You are buying a completed house from a Property Agent, Seller, and developer.
  • Or you are buying an under-construction house from a developer.
  • The house must not fall under small office home office (SOHO), small office flexible office (SOFO), small office virtual office (SOVO) dan service apartment.
  • Property Price/ Value must be less than RM500,000
  • The maximum exemption is up to the first RM300,000 stamp duty amount.

Stamp Duty Exemption Calculation

The First Example,

  • If the property Purchase Price or Property value is RM300,000, the property stamp duty will be as follows.

For the first RM100,000, 1% : RM100,000 x 1% = RM1000

From RM100,001 to RM200,000, 2% = RM200,000 x 2% = RM4,000

Total Stamp duty is RM5000.

Total Stamp Duty exemption for a first-time home buyer is RM5000.

The Second Example,

  • If the property Purchase Price or Property value is RM400,000, the property stamp duty will be as follows.

For the first RM100,000, 1% : RM100,000 x 1% = RM1000

From RM100,001 to RM300,000, 2% = RM300,000 x 2% = RM6,000

Total Stamp Duty is RM7,000

Total Stamp Duty exemption for a first-time home buyer is maximum RM5000.

So, you shall pay the difference RM7000-RM5000= RM2000.

STAMP DUTY EXEMPTION FOR LOAN AGREEMENT

Besides the above exemption, if you are applying for a home loan for the above property, the loan agreement stamp duty will be exempted too.

  • The loan agreement Stamp Duty is 0.50% from the loan amount.
  • If the loan amount is RM300,000, the stamp duty for the loan agreement is RM300,000 x 0.50% = RM1500
  • You don’t need a loan stamp duty calculator to calculate this. Just use your physical calculator.
  • The exemption applies for a maximum loan amount of RM300,000.
  • If the loan amount is RM400,000, the loan agreement stamp duty is RM400,000 x 0.50% = RM2000.
  • The maximum stamp duty exemption for loan agreement is RM1500.
  • So, you shall pay the difference RM2000-1500 = RM500.

stamp duty malaysia

Here are a list of Federal Gazette and Surat Akuan for the Stamp Duty Exemption.

Share this with your lawyer and ask them to apply for the Stamp Duty Malaysia Exemption you.

a. P.U.(A) 377

All instrument of transfer executed in relation to the purchase of only one unit of residential property the value of which is not more than three hundred thousand ringgit (RM300,000) by an individual shall be exempted from stamp duty.

Read the following link to understand more about the criteria set to get the property stamp duty exemption.

Surat Akuan Link:

http://lampiran2.hasil.gov.my/pdf/pdfam/SURAT_AKUAN_PUA_377_2018.pdf

Gazette Link :

http://www.federalgazette.agc.gov.my/outputp/pua_20181231_PUA%20377.pdf

Stamp Duty Malaysia Exemption Expiry Date: 31st December 2020

b. P.U.(A) 321

Any loan agreement to finance the purchase of only one unit of residential property the value of which is not more than three hundred thousand ringgit (RM300,000) executed between an individual named in the sale and purchase agreement.

Read the following link to understand more about the criteria set to get the property stamp duty exemption.

Surat Akuan Link:

http://lampiran1.hasil.gov.my/pdf/pdfam/SURAT_AKUAN_PUA_321_2018.pdf

Gazette Link :

http://www.federalgazette.agc.gov.my/outputp/pua_20181221_P.U.%20(A)%20321.pdf

Stamp Duty Malaysia Exemption Expiry Date: 31st December 2020

c. P.U. (A) 49

The amount of duty stamp chargeable on any instrument of transfer is remitted for a sum of five thousand ringgit (RM5,000) for the purchase of one unit of a residential property only, the value of which is more than three hundred thousand ringgit ( RM300,000) but not more than five hundred thousand ringgit (RM500,000)

Read the following link to understand more about the criteria set to get the property stamp duty exemption.

Surat Akuan Link:

Not Available online.

Gazette Link :

http://www.federalgazette.agc.gov.my/outputp/pua_20190222_PUA%2049.pdf

Stamp Duty Malaysia Exemption Expiry Date: 31st December 2020

d. P.U.(A) 320

An amount of one thousand and five hundred ringgit (RM1500) shall be remitted from the stamp duty chargeable on any loan agreement to finance the purchase of only one unit of residential property the value of which is more than three hundred thousand ringgit ( RM300,000 ) but not more than five hundred thousand ringgit (RM500,000) executed between an individual named in the sale and purchase agreement.

Read the following link to understand more about the criteria set to get the property stamp duty exemption.

Surat Akuan Link:

http://lampiran1.hasil.gov.my/pdf/pdfam/SURAT_AKUAN_PUA_320_2018.pdf

Gazette Link :

http://www.federalgazette.agc.gov.my/outputp/pua_20181221_P.U.%20(A)%20320.pdf

Stamp Duty Malaysia Exemption Expiry Date: 31st December 2020

stamp duty rate

Home Ownership Campaign (HOC) Stamp Duty Exemption

Minister of Finance announced the Home Ownership Campaign (HOC) 2019. Under HOC, Malaysian house-buyers will be exempted from stamp duties for purchase of residential units made between January to December 2019.

Developers will also offer attractive discounts and packages for house purchases made during the period.

HOC is open to all home buyers to encourage property ownership and stimulate the Home ownership Campaign.

If you’re interested to know more about Home Ownership Campaign (HOC). Follow the below REDHA link.

http://rehda.com/hoc2019/

The stamp duty exemption under the HOC campaign is as follows.

a. P.U. (A) 82

All instrument of transfer for the purchase of residential property under the National Home Ownership Campaign 2019, the value of which is more than three hundred thousand ringgit (RM300,000) but not more than two million five hundred thousand ringgit (RM2,500,000), executed by an individual shall be exempted from stamp duty in respect of one million ringgit ( RM1,000,000 ) and below of the value of the residential property.

Read the following link to understand more about the criteria set to get the property stamp duty exemption.

Gazette Link :

http://www.federalgazette.agc.gov.my/outputp/pua_20190319_PUA%2082.pdf

Gazette Link:

(Substituting for the words “30 June 2019” the words “31 December 2019”)

http://www.federalgazette.agc.gov.my/outputp/pua_20190628_PUA%20174.pdf

You’re eligible to apply if the property you bought is under Home Ownership Campaign (HOC) 2019.

Stamp Duty Malaysia Exemption Expiry Date: 31st December 2019

b. P.U. (A) 81

Stamp duty shall be exempted in respect of any loan agreement to finance the purchase of residential property under the National Home Ownership Campaign 2019, the value of which is more than three hundred thousand ringgit (RM300,000) but not more than two million five hundred thousand ringgit (RM2,500,000) , executed between an individual named in the sale and purchase agreement.

Read the following link to understand more about the criteria set to get the property stamp duty exemption.

Gazette Link :

http://www.federalgazette.agc.gov.my/outputp/pua_20190319_PUA%2081.pdf

Gazette Link:

(Substituting for the words “30 June 2019” the words “31 December 2019”)

http://www.federalgazette.agc.gov.my/outputp/pua_20190628_PUA%20173.pdf

You’re eligible to apply if the property you bought is under Home Ownership Campaign (HOC) 2019.

Stamp Duty Malaysia Exemption Expiry Date: 31st December 2019

Okay, so we have reached the end of the article if you are interested in reading more about stamp duty.

We have another article,

Stamp Duty Malaysia 2019 – Commonly asked Questions About Property Stamp Duty and Exemption.

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