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.
Question 5: Who pays the stamp duty buyer or seller?
The property stamp duty will be payable by the buyer, not seller.
Seller will pay Real Property Gain Tax (RPGT) if there is a profit earned from selling the property.
Question 6: Do you pay stamp duty when you buy or sell?
You pay stamp duty when you buy or transfer a house. You don’t need to pay stamp duty when selling a house.
When you sell a house, you might need to pay for Real Property Gain Tax (RPGT) if there is a profit earned from selling the property.
Question 7: How is registration and stamp duty calculated?
For stamp duty calculation, please refer to Question 1 & 2 above.
Registration fee is a fee charged by the land office or the state. It’s varied from one state to another.
Kuala Lumpur registration fee is RM100, regardless of property price and value.
And Selangor registration fee is based on the property value and the scale as below.
Starting from RM 50,000 and below – RM50.00
From RM 50,001 to RM 200,000 – RM200.00
Next for the RM 200,001 to RM 500,000 – RM400.00
Next RM 500,001 to RM 1,000,000 – RM500.00
And RM 1,000,001 and above – RM1500.00
Johor and Penang have the highest registration fees in the country. Go to the state registration fees website to check.
Question 8: How much is stamp duty and registration?
If you want to know how much is the stamp duty, please refer to question 1 & 2.
For the registration fees, please refer to question 7. Every state has different registration fees. You can try by searching online. Try to search for the State name registration fees. For example, Selangor registration fees.
Question 9: How can I save stamp duty and registration fees?
You can save on the stamp duty by buying a less expensive property, check out the Stamp Duty exemption criteria and purchasing a property from a developer that fall under Home Ownership Campaign (HOC).
Question 10: What is Stamp Duty Exemption?
Stamp duty exemption is when you are exempted from paying stamp duty for buying a house or transfer a property to another person.
Question 11: What are the Criteria to get Stamp Duty Exemption?
There are a few Stamp Duty Exemption for the year 2023. We’re going to list out a few stamp duty exemptions.
a. Stamp Duty Exemption 2023 For Sub sales 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. Subsale 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 not more than RM500,000
Stamp duty calculation Malaysia 2020 & Stamp Duty Exemption Malaysia 2023
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 maximum Stamp Duty exemption for a first-time home buyer is up to RM9000.
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 up to RM9000.
So, you pay RM7000-RM7000= RM0.00 stamp duty
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 RM500,000, the stamp duty for the loan agreement is RM500,000 x 0.50% = RM2500
The exemption applies for a maximum loan amount of RM500,000.
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 up to RM2500.
So, you shall pay the difference RM2000-RM2000 = RM0.00 stamp duty.
If you are interested to understand more about the Property Stamp Duty Exemption. I have an article writing full detail about the Property Stamp Duty Exemption. Follow the link here.
Question 16:Is stamp duty payable on the transfer of property between Parents and Children?
If the property transfer between parents and children is by way of love and affection, the property stamp duty is 50% exempted.
Under the Stamp Duty (Exemption) (No. 10) Order 2007, the law provides for stamp duty exemption for a transfer of property between family members by way of love and affection as follows:
a. Between Parents and Children: 50% Exemption Rate
Here note that ‘Child’ means a legitimate child, a stepchild or child adopted following any law. Also, stamp duty is typically paid by the transferee (an individual who receive the property), unless agreed otherwise by parties.
Full write up about Transfer of Property Between Family Members in Malaysia. Click the link here.
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