Under the Malaysian Home Ownership Programme (i-Miliki) for the years 2022 and 2023, the government has implemented stamp duty exemption and remission schemes tailored to different purchase price categories. This article will explore the key details of the i-Miliki programme, which are:
1) The eligibility criteria; and
2) The requirements for stamp duty exemption and remission.
Eligibility Criteria
(A) For residential properties purchased by individuals within the purchase price range of RM500,001.00 to RM1,000,000.00 the following benefits are applicable:
– Remission of 75% from stamp duty charges on any loan agreement: This means that individuals will only be liable to pay 25% of the original stamp duty charge for any loan agreement associated with financing the purchase of the residential property. This remission is regulated by PU(A) 179/2023.
– Remission of 75% from stamp duty charges on the instrument of transfer: Individuals will receive a 75% reduction in stamp duty charges for the instrument of transfer related to the purchase of the property. This remission is governed by PU(A) 180/2023.
(B) For residential properties purchased by individuals with a purchase price of RM500,000.00 and below, the following benefits apply:
– Exemption of stamp duty charges on loan agreements: Individuals will be fully exempted from paying stamp duty charges for any loan agreement associated with financing the purchase of the residential property. This exemption is regulated by PU(A) 176/2023.
– Exemption of stamp duty charges on all instruments of transfer: Individuals will be fully exempted from paying stamp duty charges for all instruments of transfer related to the purchase of the property. This exemption is regulated by PU(A) 177/2023.
Requirements for Stamp Duty Exemption and Remission
To qualify for the stamp duty exemption and remission benefits under the i-Miliki programme, individuals must meet certain criteria:
– Sale and Purchase Agreement: The purchase must be made through a Sale and Purchase Agreement between the individual (purchaser) and a property developer. It is important to note that the purchasers must be Malaysian citizens.
– Purchase Price Discount: The purchase price should be discounted by at least 10% from the original price offered by the property developer, except for residential properties subject to controlled pricing.
– Agreement Execution and Stamping: The Sale and Purchase Agreement must be executed between 1st June 2022 and 31st December 2023. It should also be duly stamped by the latest date of 31st January 2024.
– No Previous Residential Property Ownership: The individual must not have previously owned any residential property through inheritance or gift, either solely or jointly. This requirement necessitates a Statutory Declaration from the property developer confirming compliance with the purchase price discount condition and an individual declaration confirming the absence of previous residential property ownership.
It is crucial for potential homebuyers to carefully review the eligibility criteria and fulfil the necessary requirements to avail themselves of the stamp duty exemption and remission benefits. For more information, kindly contact us at +60115430-4970 or +604602-4970 or email us at penang@nglaw.com.my.
Disclaimer: This article contains general information only AND shall not constitute legal advice.
