Stamp duty exemption for property below RM500,000 applicable to first-time homebuyers, says PM
KUALA LUMPUR - 15 July 2022: Prime Minister Datuk Seri Ismail Sabri Yaakob announced a 100% stamp duty exemption for first-time homebuyers for a property with a purchase price of RM500,000 and below through the Keluarga Malaysia Home Ownership Initiative (i-Miliki) initiative from 1 June 2022 to December 2023. This exemption will apply to homes purchased during this period.
He also announced that a 50% stamp duty exemption would be given as an incentive for homes priced between RM500,000 and RM1,000,000.
He explained that the Government was taking several measures to help Malaysians buy property, including stamp duty exemption for property ownership transfers (MOT) and loan agreements.
What does this mean?
Referring to one of our guides which we briefly mentioned on stamp duty, it means assuming you bought a property for RM300,000, your stamp duty for Memorandum of Transfer (MOT) (RM5,000), and your stamp duty for Loan Agreement (LA) (RM1,500) will be waived.
Here’s the sample calculation for a property priced at RM300,000
MOT Stamp Duty
First RM100,000 x 1% = RM1,000
Next RM200,000 x 2% = RM4,000
RM1,000 + RM4,000
RM5,000 - Free (100% exemption)
LA Stamp Duty
0.5% x RM300,000
RM1,500 - Free (100% exemption)
Here’s the sample calculation for a property priced at RM600,000
MOT Stamp Duty
First RM100,000 x 1% = RM 1,000
Next RM400,000 x 2% = RM8,000
Next RM100,000 x 3% = RM 3,000
RM1,000 + RM8,000 + RM3,000
RM12,000
RM12,000 x 0.5 = RM6,000 (50% exemption)
LA Stamp Duty
0.5% x RM600,000 = RM3,000
RM3,000 x 0.5 = RM1,500 (50% exemption)
Other statements that were made:
"Although this stamp duty exemption will reduce revenue collection for the country, I would like to stress that this is the government's commitment towards all Malaysian families.
"According to the Inland Revenue Board (LHDN), the stamp duty exemption claim under the Home Ownership Campaign (HOC) is RM957.8mil.
"The highest stamp duty exemption claim is for house prices of RM500,000 and below.
"I would like to announce i-Miliki, or the Keluarga Malaysia Home Ownership Initiative, which offers stamp duty exemption on instrument of transfer and loan agreement for the purchase of first homes," said Ismail Sabri in his speech at the event here.
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