5 Jun - 2 min read
In an effort to stimulate consumer sentiment in the automotive and housing market, the government will be providing tax exemptions and financial incentives for both sectors. This was announced by Prime Minister Tan Sri Muhyiddin Yassin during the reveal of the PENJANA Economic Recovery Plan.
Malaysians will be given 100% sales tax exemption for the purchase of locally assembled cars, starting from June until 31 December 2020. Alternatively, you can enjoy a 50% sales tax exemption if you purchase an imported car instead.
Meanwhile, the housing market will see a few initiatives carried out to reinvigorate the industry. Firstly, the government will reintroduce the Home Ownership Campaign, which previously ran throughout 2019 to support home buyers looking to purchase properties. Through this campaign, Malaysians will be exempted from paying the stamp duty for land title transfers and loan agreements if they are purchasing homes valued between RM300,000 to RM2.5 million.
The stamp duty exemption for land title transfers will be limited to the first RM1 million of the value of the property, whereas full exemption is given for loan agreements. This initiative is applicable for purchase agreements signed between 1 June 2020 to 31 May 2021, subject to a rebate of at least 10% from the developers.
Secondly, Malaysians taking on a third home loan will not be subject to the financing limit of 70% of the value of the property (valued at RM600,000 and above) during the period of the Home Ownership campaign. Instead, it is subject to the internal risk management practices of the financial institution offering the loan.
Lastly, real property gains tax (RGPT) is also exempted for Malaysians who wish to sell their residential properties between 1 June 2020 to 31 December 2021. That said, this is limited only to three residential properties per individual.
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