Stamp Duty Remission For First Time Buyers (P.U.(A) 53 & P.U.(A) 54)

Good news to all the First Time Buyer in Malaysia! Are you considering to purchase your first house for self-staying or investment? Now may be the best time! The government just announced the new stamp duty exemptions (P.U.(A) 53 & P.U.(A) 54) in year 2021, in which the stamp duty for Memorandum of Transfer and Facilities Agreement can be exempted if the following conditions are fulfilled:-

1. You are a first time buyer

   You are not a registered owner of any property in Malaysia. This is your first property, and you never inherited, received any property as a gift or bought any property before.

2. You are a Malaysian Citizen

   The exemptions do not applicable to a buyer who is buying the property in the capacity as a company.

3. The value of the Property does not exceed RM500,000.00

   The purchase price and the market value of the Property do not exceed RM500,000.00.
   For example, if you are buying this Property at the purchase price of RM450,000.00, but the Government Valuation and Property Service Department valued the Property at the market price of RM510,000.00, then you will not be entitled to the exemptions.

4. The date of the Sale and Purchase Agreement: 1 January 2021 to 31 December 2025.

   The Sale and Purchase Agreement for the purchase is executed on or after 1 January 2021 but not later than 31 December 2025.

5. Only limited to Residential Property

   For example, a house, a condominium, an apartment or a flat under residential title.
   Property held under commercial title shall not be applicable under the exemptions.

Q : How much you can save under P.U.(A) 53 & P.U.(A) 54 ?

1. As at today, the current rate of the stamp duty of the Memorandum of Transfer is as below :

   For the first RM100,000.00	1%
   For the next RM400,000.00	2%
   For the next RM500,000.00	3%
   Balance sum exceeding RM1,000,000.00	4%

2. As at today, the current rate of the stamp duty of the Loan Agreement is as below :

   Loan Amount

   0.5 %

Illustration :

Mr A has fulfilled all the conditions as listed above. He is buying a residential property valued at RM450,000.00, and obtained a loan approval of RM405,000.00 from a licensed bank in Malaysia, he will be able to save total of RM10,025.00 as a result of the exemptions calculated as follow :-

This article is written by 

Yeo Soo Peng
Partners, Low & Partners

Christine Sai Swee Kee
Associate, Low & Partners