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Conveyancing Tutorial Question 5

Mary, a Malaysian citizen, bought an apartment for RM500,000 from Green developers sdn bhd at the HOC 2021. The SPA was executed on 15 August 2021. This transaction qualifies for stamp duty exemption under the following conditions: 1) The property is considered a residential property per the definition. 2) The SPA was executed between 1 June 2020 to 31 December 2021 as required. 3) The HOC 2021 provides partial stamp duty exemption for residential properties priced between RM300,000 to RM2.5 million with a 10% discount from the developer.

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119 views

Conveyancing Tutorial Question 5

Mary, a Malaysian citizen, bought an apartment for RM500,000 from Green developers sdn bhd at the HOC 2021. The SPA was executed on 15 August 2021. This transaction qualifies for stamp duty exemption under the following conditions: 1) The property is considered a residential property per the definition. 2) The SPA was executed between 1 June 2020 to 31 December 2021 as required. 3) The HOC 2021 provides partial stamp duty exemption for residential properties priced between RM300,000 to RM2.5 million with a 10% discount from the developer.

Uploaded by

Swarnamugi Angel
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© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Conveyancing Tutorial Question 5

1. Mary, a Malaysian citizen bought an apartment from Green developers sdn bhd for RM
500,000 at the HOC 2021. The SPA was executed on 15 August 2021.

 “Residential property” means a house a condominium unit, an apartment or a flat in


Malaysia, and include a service apartment and a small office home office (SOHO)
owned by an individual, jointly or solely which is only used only as a dwelling house.
Minister will exempt individual who is a citizen from the application of schedule 5 for
the payment of tax on the chargeable gain accruing on the disposal of a residential
property on or after 1 June 2020 until 31st December 2021.

 The SPA for the disposal of the residential property is executed on or after 1 June 2020
but not later than 31 December 2021 and is duly stamped not later than 31 January 2022.

 Stamp Duty (Exemption) (No. 3) Order 2020 & Stamp Duty (Exemption) (No. 4) Order
2020
- Stamp duty exemptions are granted for instruments of transfer (partial exemption)
and loan agreements (full exemptions) for sale and purchase agreements signed
between 1st June 2020 until 31st may 2021. The reintroduction of the HOC for
2021 provides a partial exemption of the stamp duty for residential properties
priced between RM300,000 to RM 2.5 Million subject to at least 10% discount
provided by the developer.

- On 31st May 2021, the Ministry of Finance announced that the residential home
stamp duty exemption scheme under the HOC will be extended for another six
months until 31st December 2021.

Application:

Here, the apartment that Mary has bought is under the residential property as stated under the
definition above. Besides, the SPA in the question is executed on 15 August 2021 which is after
1 June 2020 and not later than 31 December 2021 and thus it fulfilled the requirement of SPA for
the disposal of residential property. Furthermore, the Home Ownership Campaign is providing a
stamp duty exemptions because the apartment Mary has bought is RM500,000 which is in
between RM300,000 and RM2.5 Million and 10% discount will be provided by the Green
Developers Sdn Bhd. Moreover, since the ministry of finance has extended another six months of
the stamp duty exemptions which is until 31 December 2021, thus Stamp duty exemptions are
granted for instruments of transfer and loan agreement for sale and purchase agreements as the
SPA in this question is executed on 15 August 2021.

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