Kuala Lumpur:The Malaysian government has proposed a review of the stamp duty exemption to continue supporting first-time home buyers. The exemption will apply to residential homes priced up to RM500,000, offering a 100 percent stamp duty exemption on loan agreements and instruments of transfer.

According to BERNAMA News Agency, for homes priced between RM500,000 and RM750,000, the first RM500,000 will have a 100 percent stamp duty exemption, with the remaining amount up to RM750,000 enjoying a 50 percent exemption. This proposal will be effective for transactions involving sale and purchase agreements executed from January 1, 2027, to December 31, 2030.

Currently, Malaysian citizens purchasing their first residential home priced up to RM500,000 benefit from a full stamp duty exemption for agreements executed between January 1, 2021, and December 31, 2027.

In addition, the Ministry of Finance has proposed restoring the 100 percent stamp duty exemption for transactions related to the revival of abandoned housing projects. This measure, effective from January 1, 2027, to December 31, 2030, aims to support the MADANI Housing Reform programme’s goal of eliminating abandoned housing projects by 2030.

The exemption will apply to rescue contractors or developers and original buyers of abandoned houses. Eligible transactions include loan agreements and instruments of transfer certified by the Ministry of Housing and Local Government. Currently, similar exemptions apply to agreements executed from January 1, 2013, to December 31, 2025.