The Stamp Duty (Remission) (No. 2) Order 2019 (‘Remission Order’) was gazetted on 26 December 2019 and will come into operation on 1 January 2020.
The Remission Order remits 50% of the stamp duty chargeable on any instrument of transfer of any immoveable property operating as a voluntary disposition inter vivos from the donor specified in first column below to the recipient specified in second column below –
The grant of remission under the Remission Order is subject to the following conditions –
- The instrument of transfer is executed on or after 1 January 2020; and
- The recipient is a Malaysian citizen.
In addition, the child must be a legitimate child, step child or child adopted in accordance with any law.
When the Remission Order comes into operation, the Stamp Duty (Remission) (No. 7) Order 2002 [P.U.(A) 434/2002] (‘Revoked Order’) will be revoked.
The scope of the remission of stamp duty granted in relation to the transfer of immovable property between parents and child has been narrowed in that the Remission Order requires the recipient of the transfer to be a Malaysian citizen, which was not a requirement under the Revoked Order.
This measure was included in Appendix 13 of the 2020 Malaysian Budget.