Under the PEMERKASA+ package announced by Prime Minister Tan Sri Muhyiddin Yassin, the stamp duty exemption for the purchase of residential properties under the Home Ownership Campaign (HOC) will be extended for six months until 31 December 2021. Besides that, the sales tax exemption on passenger cars will also be extended until the end of the year.

“As part of the PENJANA package in June 2020, the government had announced a stamp duty exemption under the HOC which was scheduled to end on 31 May. We are happy to announce that the government has agreed to extend the HOC stamp duty exemption until 31 December 2021,” said the prime minister.

Under this exemption, Malaysians are 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 is limited to the first RM1 million of the value of the property, whereas the full exemption is given for loan agreements.

“The government also agrees to extend the sales tax exemption on CKD and CBU passenger cars which was previously announced under the PENJANA incentive from 1 July 2021 to 31 December 2021,” said Muhyiddin. Prior to this latest extension, sales tax exemption was first introduced for the period of 15 June to 31 December 2020 before being extended until 30 June 2021.

CKD or completely knocked down cars are eligible for 100% sales tax exemption whereas completely built up (CBU) cars get a 50% tax exemption. For reference, the sales tax for vehicles in Malaysia is currently set at 10% for both locally assembled and imported cars.

• TAGS:
• Car Sales Tax
• Car Sales Tax Exemption
• HOC
• Home Ownership Campaign
• PEMERKASA
• Stamp Duty
• Stamp Duty Exemption