PROPERTY - STAMP DUTY ON REAL ESTATE / PROPERTY TRANSACTIONS

 

Stamp Duty payable to the relevant stamp office is chargeable as follows:

     STAMP DUTY   

 

Property

<100,000: 1%

RM100,001-500,000: 2%

500,001-RM1,000000: 3%

>RM1,000,000: 4%

 

Loan Facilities

0.5% for any amount

 

Shares

0.3%

 

Lease / Tenancy

<RM2,400: Nil

For every RM250 or part thereof in excess of RM2,400:

< 1 yr: RM1.00

> 1yr < 3yrs: RM2.00

> 3yrs: RM4.00

 

Exemption from Stamp Duty

Transfer of Property between associated companies

 

Budget 2008: Exemption from Stamp Duty

For properties costing RM250,000 and below

 

[Stamp Act 1949 (Act 378)]

 

Conveyance, Assignment, Transfer or Absolute Bill of Sale (except shares, securities, etc.):

Consideration or market value of property, whichever greater

For every RM100 or part thereof

First RM100,000

RM1

RM100,001 to RM500,000

RM2

RM500,001 to RM1,000,000

RM3

Exceeding RM1,000,000

RM4

 

Charge or mortgage, agreement for a charge or mortgage (Loan Facilities Agreement):

Price or value on date of transfer, whichever greater

For every RM1,000 or part thereof

Any amount

RM5

 

Sale of stock, shares or marketable securities:

Price or value on date of transfer, whichever greater

For every RM1,000 or part thereof

Any amount

RM3

 

Lease / Tenancy or Agreement to Lease:

Annual Rent

Not exceeding 1 year

More than 1 year but not exceeding 3 years

More than 3 years

Not exceeding RM2,400

Nil

Nil

Nil

For every RM250 or part thereof in excess of RM2,400

1.00

2.00

4.00

Formula for calculation of stamp duty on lease / rental:

            Average Annual Rent*  - 2,400
[      ______________________________        X   Multiplication Factor**         ] (Rounded up to the nearest Multiplication Factor**)
 
                             250
 
*Average Annual Rent = Average Monthly Rental X 12
 
**Multiplication Factor:
Not exceeding 1 year: RM1
More than one but not exceeding 3 years: RM2
Exceeding 3 years: RM4

Relief from Stamp Duty in the case of transfer of property between associated companies.

Applies to transfer of beneficial interest in property from one company with limited liability to another such company, where the companies in question are associated, that is to say, one is the beneficial owner of not less than 90% of the issued share capital of the other, or where a third company with limited liability is the beneficial owner of not less than 90% of the issued share capital of each of the aforesaid companies. [Ownership referred to is either directly or through another company or other companies, or partly directly and partly through another company or other companies] - also refer to 6th Schedule of the Stamp Act 1949 (Act 378). [Stamp Act 1949 (Act 378)]

Stamp duty exemption announced in last Budget 2008 tabled on Friday, 7 September 2007

To further stimulate the property sector in particular housing, the Government has proposed that a 50% stamp duty exemption on documents of transfer be given for the purchase of one house of not more than RM250,000 per unit.

We expect an exemption order to be tabled in parliament and gazetted. As soon as we have more information regarding the date of application, etc, we will inform our clients via this website.

 

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