Stamp Duty - real property gains tax (“RPGT”)
Generally, an acquisition of property attracts stamp duty exposure and a disposal of property may attract real property gains tax (“ RPGT ”). Stamp duty is calculated on the market value of the property at the time of the acquisition whereas RPGT is calculated on the profit gained from the disposal of the property. In the case of a transfer of property between family members by way of love and affection, the law provides for a full or partial exemption of stamp duty and/or RPGT in certain instances. Stamp Duty The stamp duty payable for arm’s length acquisitions is calculated in the following manner: Consideration/ Adjudicated Value Stamp Duty rate First RM100,000 1% Subsequent RM400,000 2% Amount exceeding RM500,000 3% In contrast, pursuant to the Stamp Duty (Exemption) (No. 10) Order 2007, the law provides for stamp duty exemption for a transfer of property between family members by way of love and affection as follows: Transferor Transferee Exemption Rate Hus...