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Stamp duty exemption for the transfer of property on grounds of love and affection
In Budget 2023, it was proposed that all instruments of transfer of property on grounds of love and affection between parents and children, or grandparents and grandchildren, be given a 100% stamp duty exemption on the first RM1 million of the property’s value. Any remaining balance will be subject to stamp duty at an ad valorem rate, with a 50% remission on the duty imposed (see Take 5: Malaysia Budget 2023).
To legislate this proposal, the Stamp Duty (Exemption) (No. 3) Order 2023 [P.U.(A) 178] was gazetted on 9 June 2023 and is deemed to have come into operation on 1 April 2023.
The Order provides a stamp duty exemption on all instruments of transfer for any immovable property operating as a voluntary disposition inter vivos executed between the following:
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Donor |
Recipient |
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(a) Mother or father; or (b) Mother and father |
Child |
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Child |
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(a) Grandfather or grandmother; or (b) Grandfather and grandmother |
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(a) Grandfather or grandmother; or (b) Grandfather and grandmother |
(a) Grandfather or grandmother; or (b) Grandfather and grandmother |
A 100% exemption will be given on the stamp duty imposed on the first RM1 million or less of the immovable property’s market value. A 50% exemption will be given on the stamp duty imposed on the remaining balance (i.e., amount exceeding the first RM1 million) of the immovable property’s market value.
The exemption will only apply if:
(a) The instrument of transfer is executed on or after 1 April 2023, and
(b) The recipient is a Malaysian citizen