Resources

Stamp duties

Stamp Duty for transfer of Property - Memorandum of Transfer/Deed of Assignment

When a property is transferred/assigned, Stamp Duty is borne by the transferee/assignee. Stamp duty is based on:

• the price paid for the property or its market value, whichever is the higher. This is provided for under the First Schedule to the Stamp Act, 1949.
• The material date of valuation is the date of execution of the Sale and Purchase Agreement, otherwise it is the date of the execution of the instrument of transfer/assignment.
  
  

  - For computation of stamp duty: Click here

  	Value of Property	Stamp Duty
  i.	On the first RM100,000:	1%
  ii.	On any amount in excess of RM100,000 but not exceeding RM500,000:	2%
  iii.	On any amount in excess of RM500,000	3%

  
  Registration fees on transfer

  Wilayah Persekutuan = RM100.00
  Selangor = according to scale :

  	Values	Fees
  i.	RM50,000	RM50,000
  ii.	RM50,001.00 - RM200,000.00	RM100,000
  iii.	RM200,001.00 - RM500,000.00	RM200.000
  iv.	RM500,001.00 - RM1,000,000.00	RM300.000
  v.	Above 1 million	RM500.00

  
  
• Adjudication fees on transfer : RM10.00
• Search fees : RM30.00 (Selangor)
• Lodgement of Private Caveat : RM80.00 (Selangor)
• Lodgement Withdraw of Private caveat : RM60.00 (Selangor)
• Lodgement Withdraw of Lien-holders caveat : RM80.00 (Selangor).

Charge

• Registration of charge : RM50.00 (Selangor)
• Stamp duty on charge : RM5.00 for every RM1,000.00 of the loan amount or 0.5% of loan amount.
• Stamp duty on copies of charge : RM10.00 flat per copy

Stamp duty for Loan Agreement

Loan Agreement

• Stamp duty : RM5.00 for every RM1,000.00 of the loan amount or 0.5% of loan amount
• Loan Agreement with Power Of Attorney clause : additional RM10.00
• Registration of Power of Attorney at High Court : RM1.00 per printed page
• Stamp duty on copies of Loan Agreement : a flat RM10.00 per copy

Stamp duty for Deed of Assignment

Stamp duty : Nominal at RM10.00

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Real Property Gains Tax

There is no capital gains tax in Malaysia; however, Real Property Gains Tax (RPGT) applies to properties sold in different years as below:

With effect from 1 January 2014, the revised RPGT rates for the disposal of real property and shares in real property companies will be as follow:

Disposal Period	RPGT Rates
	Companies	Individual (Citizen/ PR)	Individual (Non-Citizen)
For disposals within 3 years	30%	30%	30%
For disposals within 4th year	20%	20%	30%
For disposals within 5th year	15%	15%	30%
For disposals within 6th year and subsequent years	5%	0%	5%

The holding period of 3, 4, 5 and 6 years refer to the period between the date of the acquisition of the property and the date of such property.

The following RPGT exemptions which were implemented under the previous regime continue to be available:

• RPGT exemption on gains from the disposal of one residential property once in a lifetime to individuals;
• RPGT exemption f up to RM10,000 or 10% of the net gains, (whichever is higher) from the disposal of real property by individuals; and
• RPGT exemption on gains arising from the disposal of real property between family members (e.g. husband and wife, parents and children, and grandparents and grandchildren).

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LEGAL FEES

The Legal Fee Calculator for a standard Sale & Purchase Agreement is based on solicitors' remuneration order 2005. The scale fees are as follow:

Consideration or Adjudicated Value	Scale of Fees
For the first RM150,000	1.0% (subject to a minimum fee of RM300)
For the next RM850,000	0.7%
For the next RM2,000,000	0.6%
For the next RM2,000,000	0.5%
For the next RM2,500,000	0.4%
Where the consideration or adjudicated value is in excess of RM 7,500,000	Negotiable on the excess (but shall not exceed 0.4% of such excess)

For example:

If the property price is RM550,000, the calculation is:
First RM150,000 @ 1%	RM1,500
Next RM400,000 @ 0.7%	RM2,800
Total Legal Fee	RM4,300

Assessment tax: A local property tax, which is based on the annual rental value of a property. It is determined by local authorities/municipals, generally at a rate of six percent for residential properties and is payable in two instalments annually.

Quit Rent: A local property tax by the Land Office, which applies to all properties and is calculated on an annual rate of one to two sen per square foot. Quit rent liability is generally less than RM 100.00 annually.