Have you ever thought of transferring your property during your lifetime to your family members?
If you’ve been worried about legal costs and stamp duty associated with transferring your property to your family members, there’s good news, our government has recently announced a stamp duty waiver.
How much do you save if you transfer the properties now?
The greater the value of your property, the greater your potential savings.
Before 2023, stamp duty is calculated on the following basis depending on your property value
| Property Value | |
|---|---|
| First RM100,000 | 1% |
| Next RM400,000 | 2% |
| Next RM500,000 | 3% |
| Thereafter | 4% |
– Instead of the high stamp duty costs above, starting 1/4/2023, all property transfers (limited to the first 1 million) based on love & affection for the following family categories will almost be FREE.
Illustration of the stamp duty saving
Example 1: A terrace house with market value of RM1,000,000.00.
| Transfer between: | Stamp Duty Before 1/4/2023 | Stamp Duty Waiver starting from 1/4/2023 | Total Savings |
|---|---|---|---|
| Spouse | Free | Free | – |
| Parents & Children | RM12,000 | RM10 | RM11,900 |
| Grandparents & Grandchildren | RM24,000 | RM10 | RM23,990 |
Example 2: A condominium with market value of RM500,000.00.
| Transfer between: | Stamp Duty Before 1/4/2023 | Stamp Duty Waiver starting from 1/4/2023 | Total Savings |
|---|---|---|---|
| Spouse | Free | Free | – |
| Parents & Children | RM4,500.00 | RM10 | RM4,490 |
| Grandparents & Grandchildren | RM9,000.00 | RM10 | RM8,990 |
** Kindly note that the waiver is limited to the first RM 1 million of the property’s value, the remaining balance of the property’s value is subject to ad valorem duty rate with 50% exemption**
How long is the validity of the stamp duty waiver?
It’s only valid until 31/12/2023. However, it’s not recommended for you to only start appointing lawyers for the transfer at the end of the year, because your lawyers may need to take months to prepare the legal documents to affect the transfer. As such, it’s advisable to plan and take actions now or earlier.
What you should do now?
– Decide if you wish to enjoy this special stamp duty waiver opportunity and transfer your properties to your loved ones.
– Contact us to know how you can enjoy this stamp duty waiver benefits.
Disclaimer: The information contained in this article is provided solely for general interest and therefore should not be relied upon or construed as legal advice.
If you have any questions or require any additional information, please contact our lawyer that you usually deal with.