Q.
You are an estate negotiator. You client asks you what are the stamp duties you have to pay when you rent or buy properties.
A.
Below is extract from D-Choice Properties, a registered estate agent firm.
Stamp Duty Chargeable To Malaysia Property
Stamp duty is one of the method our government earns revenue.
When a property is transacted, stamp duty is imposed on the following manners:
1) When A Property Is Rented.
The tenancy is stamped with an amount calculated as follow:-
a) Firstly, calculate the annual rent (eg: RM600 per month x 12 months = RM7,200).
b) Then less RM2,400 from the annual rent (eg. RM7,200 - 2,400). This is because the first RM2,400 is exempted from stamp duty which means that rent per month of RM200 need not pay stamp duty.
c) Next, calculate the stamp duty payable based on the following table:-
When the lease is for a period:-
1 year or less => RM1
more than 1 year but equal to 3 years or less than 3 years => RM2
Exceeding 3 years or more => RM4 (which means 4 years and above)
... for every RM250 or part thereof in excess of RM2,400
[7200 - 2400 = 4800;
4800 / 250 = 18;
18 x 1 (if tenancy <1 year) = RM18 (which means 12 months or less)
18 x 2 (if tenancy 1<x<3 years) = RM36 (which means 2 or 3 years)
18 x 4 (if tenancy >3 years) = RM72 (which means 4 years or above)]
d) For every duplicate (counterpart) copy of the tenancy agreement a stamp duty of RM10 is chargeable.
Who is liable to pay for Stamp Duty in Tenancy Agreement?
Based on 3rd Schedule of Stamp Duty Act 1949, Lessee or Tenant is to pay for the Stamp Duty.
2) When A Property Is Sold.
All transfers of property attract stamp duty regardless whether the acquirer gives consideration (value in money or kind example by exchange, as gifts from loves one) for the transfer or not.
The Malaysian government at times impose stamp duty exemption for certain property type for a certain period of time so as to encourage housing sale. Currently each Malaysian individual is entitled to an exemption for 50 per cent of the stamp duty payable upon the purchase their first residential property for a consideration not exceeding RM400,000. It is given for only one house per individual and it applies where a sale and purchase agreement is entered into between September 8, 2007 and December 31, 2014. [In 2015 Budget, this ceiling of RM400,000 had been increased to RM500,000.]
Stamp duty applies to the value of passing on a gift of real property and if the persons concerned are within certain close relationships, there is a remission of the duty payable calculated as follows:
1) Between Husband & Wife 100% (remission) ie forgotten.
2) Mother and/or father to child 50%.
Read more: Advisory: Stamp duty on property transactions.
Penalty and Consequences Of Document Not Duty Stamped
Stamp duty for transfer of property is currently chargeable at the following rate:
Value Of Property Rate Of Stamp Duty %
Up to RM100,000 1
RM100,001 to RM500,000 2
RM500,001 onwards 3
3) When A Property Is Mortgaged
When a property is mortgaged, mostly likely the lender of the money will claim charge over the property, the lender does this by creating a Charge on the property. Hence, a Charge is an instrument created by statute namely the National Land Code (NLC). A Charge enable the Chargee (lender) a security for the loan granted to the Chargor (Borrower) over the property charged.
Stamp duty is calculated at the rate of about 0.5%.
Ref:
http://properties.d-choice.com/realestatenews/stampduty.htm
http://www2.nst.com.my/red/advisory-stamp-duty-on-property-transactions-1.304075
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