#BUDGET 2011* Stamp duty exemption on housing loans/transfer agreements

KUALA LUMPUR: In an effort to ensure every citizen owns a residential property, the government has proposed stamp duty exemption on instruments of transfer and loan agreements for residential property.

To encourage ownership of the first residential property, it has proposed that a stamp duty exemption of 50% be given on instruments of transfer of a residential property priced not exceeding RM350,000.

The exemption is granted for the first residential property purchased by a Malaysian citizen and it can be claimed once only within the exemption period, Prime Minister, Datuk Seri Najib Tun Razak said on Friday, Oct 15.

Residential properties include terrace houses, condominiums, apartments or flats, he said when tabling the Budget 2011 at Parliament here, on Friday.

The effective date for the exemption is for sales and purchase agreements executed between Jan 1, 2011 and Dec 31, 2012, said Najib.

As for the stamp duty exemption on loan agreements for residential property, he said there would be also a stamp duty exemption of 50% for residential property prices not exceeding RM350,000.

This exemption is applicable for sales and purchase agreements executed from Jan 1, 2011 to Dec 31, 2012. — Bernama