July 31, 2020 In HOC 2020, Property, RPGT

Penjana Economic Package 2020 : Incentives for Property Sector in Malaysia

The Penjana Economic Package 2020 incentives introduced by the Malaysian government in relation to the Property Sector are recently gazetted as Law on 27 July 2020:-

1. Real Property Gains Tax Exemption Order 2020

  • RPGT exemption for disposing of up to 3 units residential property per each Malaysian citizen
  • Period: on or after 1st June 2020 until 31st December 2021.  
  • “Residential Property” means house, condo, flat, apartment (includes service apartment and SOHO unit)
  • If you have more than 3 units to dispose during the Period, u can elect any 3 of them.

2. Home Ownership Campaign (HOC) 2020/2021

a. Stamp Duty (Exemption) (No.4) Order 2020
  • Stamp duty exemptions for instruments of transfer for residential properties priced between RM 300,000 to RM 2,500,000 (before 10% discount)
  • The stamp duty exemption is limited to the first RM 1,000,000 of the purchase price (which means a maximum stamp duty saving of RM 24,000 for a property priced at RM 1 million) and subsequent amount above RM 1 million is subject to stamp duty of 3%.
  • Only Apply to:-
    1. Sale and purchase agreements signed between individual (Malaysian Citizen) and a Property Developer (registered with Real Estate and Housing Developers’ Association in West Malaysia (REHDA);
    2.  SPA signed between 1st June 2020 until 31st May 2021; and
    3. Minimum 10% discount on the original price provided by the Developer.
  • Must be supported by HOC certificate issued by REHDA
b. Stamp Duty (Exemption) (No.3) Order 2020
  • Stamp duty exemptions for loan agreements to finance the purchase of residential properties priced between RM 300,000 to RM 2,500,000 (before 10% discount) 
  • Only Apply to:-
    1. Sale and purchase agreements signed between the individual (Malaysian Citizen) and a Property Developer (registered with REHDA);
    2. SPA signed between 1st June 2020 until 31st May 2021; and
    3. Minimum 10% discount on the original price provided by the Developer.
  •  Must be supported by HOC certificate issued by REHDA.