50% stamp duty exemption for first time buyer of residential property (1/1/2013 - 31/12/2014)

Under the Budget 2013, the Government has agreed to extend the 50% stamp duty exemption for first-time house buyers to 31st December 2014. The price cap of the residential property will be raised to RM400,000 from RM350,000 under the revised ruling. 

The Government said the proposal is to reduce the cost of owning the first residential property and also due to the increase in the price of such property.

Pursuant to the Stamp Duty (Remission) (No. 4) Order 2012 [P.U (A) 417/2012], the effective date is for sales and purchase agreements (SPA) executed from 1st January 2013 to 31st December 2014.

The 50% stamp duty exemption is also applicable for loan agreement/financing agreement executed between the purchaser named in the SPA (who is Malaysian citizen) and the financial institutions listed in the Stamp Duty (Remission) (No. 3) Order 2012 [P.U (A) 416/2012] to finance the purchase of residential property costing not more than RM400,000.