Stamp Duty Exemption for Property between RM500K to RM 1 million (i-MILIKI exemption)

On the 15^th of July 2022, the YAB Prime Minister Datuk Seri Ismail Sabri Yaakob (“YAB Prime Minister”) had announced that:^[1]

1. Property priced below RM500K 

• To enjoy 100% stamp duty exemption 
• SPA signed from 01.06.2022 until 31.12.2023

2. Property priced between RM500K to RM 1 million

• To enjoy 50% stamp duty exemption
• SPA signed from 01.06.2022 until 31.12.2023

There was an earlier House Ownership Campaign (“HOC”) initiative by the government that allows property owner to enjoy stamp duty exemption under the HOC 2020 which had ended last year December 2021. However, the entitlement can only be enjoyed if it is a HOC registered project by the developer with the respective developer’s association (REHDA, SHAREDA, SHEDA).

When can the property owners enjoy the i-MILIKI stamp duty exemption?

1. First, there must be a PU(A) being legislated by the parliament or known as legislative Supplement A.
2. Second, it must be passed by the parliament (either through the first and second reading during the parliament is in session).
3. the PU(A), must be published in the government gazette.
4. The enforcement date of the gazette PU(A) will only takes place the day after it is being published in the government’s gazette (see section 19 of the Interpretation Acts 1948 and 1967 (Act 388) (“IA”).

Conclusion

With due respect, the statement made by the YAB Prime Minister is merely a hint that the law will be passed subjected to it being published in the government’s gazette. It is to be noted that potential buyers should pay attention to the upcoming government’s budget or to check with lawyers if the PU(A) has been published in the government’s official gazette for the stamp duty exemption to have effect.

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^[1] https://www.edgeprop.my/content/1903062/stamp-duty-exemption-first-time-home-owners-buying-properties-below-rm500000-—-pm

Authored by Dylan Chong

The contents of this publication are given as general information for reference purposes only and do not constitute the firm’s legal advice. For any specific matter or legal issue, please do not rely on this publication but make sure to consult a legal adviser. We would be delighted to answer your questions, if any.

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