Stimulating the Economy With Incentives for Property Sector
As we enter the 4th phase of steering through COVID-19, Prime Minister of Malaysia, YAB Tan Sri Muhyiddin Yassin announced the Economic Recovery Plan on Friday, June 5th.
"The Government now unveils PENJANA (Pelan Jana Semula Ekonomi Negara) or the National Economic Recovery Plan. This Government is committed to taking an inclusive and holistic approach to Malaysia’s economic recovery, and it is important to us that everyone is part of this journey. Towards this end, PENJANA will focus on 3 key thrusts - Empower People, Propel Businesses and Stimulate the Economy." the Prime Minister stated.
The government is implementing the following property incentives to stimulate the property market and provide financial relief to home buyers, beginning in June 2020.
Tax exemption for the purchase of properties:
- Home Ownership Campaign (HOC) to be reintroduced: Stamp duty exemption on the instruments of transfer and loan agreement for the purchase of residential homes priced between RM300,000 to RM2.5 million subject to at least 10% discounts provided by the developer. The exemption on the instrument of transfer is limited to the first RM 1 million of the home price while full stamp duty exemption is given on loan agreement effective for sales and purchase agreements signed between 1st June 2020 to 31st May 2021.
- RPGT exemption for disposal of residential homes from 1st June 2020 to 31st December 2021 (This exemption is limited to the disposal of three units of residential homes per individual)
- In addition, the current 70% margin of financing limit applicable for the third housing loan onwards for property valued at RM600,000 and above, will be uplifted during the period of the HOC, subject to internal risk management practices of financial institutions.