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Revocation of previous stamp duty remission for the transfer of property on grounds of love and affection
As highlighted in an earlier alert (see Tax Alert No. 10/2023), the Stamp Duty (Exemption) (No. 3) Order 2023 [P.U.(A) 178] was gazetted to provide a stamp duty exemption on all instruments of transfer for any immovable property operating as a voluntary disposition inter vivos executed between the following:
| Donor | Recipient |
(a) Mother or father; or (b) Mother and father | Child |
| Child | (a) Mother or father; or (b) Mother and father |
(a) Grandfather or grandmother; or (b) Grandfather and grandmother | Grandchild |
| Grandchild | (a) Grandfather or grandmother; or (b) Grandfather and grandmother |
A 100% exemption will be given on the stamp duty imposed on the first RM1 million or less of the immovable property’s market value. A 50% exemption will be given on the stamp duty imposed on the remaining balance (i.e., amount exceeding the first RM1 million) of the immovable property’s market value.
Following the above, the Stamp Duty (Remission) (Revocation) Order 2023 [P.U.(A) 189] was gazetted on 26 June 2023 to revoke the stamp duty remission of 50% given on the instrument of real property transferred between parents and children by way of love and affection. Any unstamped instrument of transfer executed before 1 April 2023 (i.e., the date P.U.(A) 178 is deemed to have come into operation) will still be entitled to the remission under the revoked Order.
The Revocation Order is deemed to have come into operation on 1 April 2023.