Stamp duty relief granted under exemption order for transfer of immovable property for voluntary disposition between certain family members

28 July 2023

On 26 June 2023, the Malaysian Stamp Duty (Remission) (Revocation) Order 2023 (“Revocation Order”) was gazetted and deemed to have come into operation on 1 April 2023. The Revocation Order has revoked the Stamp Duty (Remission) (No.2) Order 2019 (“Remission Order”) retrospectively. The Revocation Order allows any instrument of transfer of immovable property made voluntarily in their lifetime between parent(s) and child that was executed before 1 April 2023 but has yet to be submitted for stamping, to still qualify for the remission provided under the Remission Order.

On 9 June 2023, the Stamp Duty (Exemption) (No.3) Order 2023 (“Exemption Order”) was gazetted and deemed to have come into operation on 1 April 2023. The Exemption Order stipulates an exemption of stamp duty for any instrument of transfer of immovable property valued one million ringgit or less, and executed on or after 1 April 2023, made voluntarily in their lifetime between parent(s) and child, grandparent(s) and grandchild, and vice versa, provided the recipient is Malaysian. If the property is worth more than one million ringgit, 50% of the stamp duty chargeable on the remaining balance of the property’s value will be imposed.

The introduction of the Exemption Order has broadened the scope of the previous exemption to include transfers of property between grandparents and grandchildren.