Scenario
Joel bought his first house back in Feb 2013 at the price of RM530,000.00. Back then, he did not apply for stamp duty remission or partial stamp duty exemption as he was told that purchase price of his house is exceeding the permitted threshold of RM400,000.00.
Joel intends to purchase another house now at the price of RM380,000.00. Since the purchase price is lesser than RM400,000.00, Joel has requested his solicitors to apply for the partial stamp duty exemption. He learned that all Malaysian citizen shall be eligible to claim such exemption for once in lifetime.
Mythbusted.
Pursuant to the Stamp Duty (Remission) (N. 4) Order 2012, any Malaysian Citizen is entitled to apply for 50% remission on stamp duty chargeable on any instrument of transfer in relation to residential property provided that:
- the sale and purchase agreement for the purchase of the residential property referred is executed on or after 1 January 2013 but not later than 31 December 2014;
- the said Malaysian citizen does not own any other residential property;
- the purchase price of the residential property shall not be more than RM400,000.00; and
- the application for the remission of stamp shall only be made once.
Since Joel has own a residential property, he is not entitled to apply for the said remission for his second house.
So, how much did you know about this Legal Myth?
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