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Malaysia: Stamp duty for properties above RM1m stays at 3%
KUALA LUMPUR: The stamp duty for properties costing more than RM1mil will remain at 3% with effect from Jan 1, 2018, the Finance Ministry said.
It said on Wednesday the government will not go ahead with the proposal to raise the stamp duty from 3% to 4% for these properties as announced in the Budget 2017.
The ministry also said the stamp duty for properties costing RM100,000 is 1% while for those costing between RM100,001 and RM500,000 is 2%.
For properties costing RM500,001 and above it is 3%.
According to the Malaysian Institute of Accountants, this proposed mesaure in Budget 2017 was introduced to enhance the government’s commitment to long-term fiscal sustainability.
Recall that the proposed introduction of the higher stamp duty rate of 4% on the transfer of properties priced above RM1mil would be an impetus for purchasers to make their purchases prior to Jan 1, 2018 in order to avoid being subject to the higher stamp duty rate.
The MIA pointed out that this proposal, if it comes into effect, will result in property buyers who purchase properties costing more than RM1mil after Jan 1, 2018 having to pay approximately 33% more stamp duty on the purchase price in excess of RM1mil.
Source: https://www.thestar.com.my/business/business-news/2017/12/20/stamp-duty-for-properties-above-rm1m-stays-at-3pct/#JvHpsyZl0I0ctYjc.99