HOW & WHEN?

Many of you would consider transferring ownership of your houses to your children, spouse and some close to you during lifetime or after death. YOU CAN DO SO BY:

WILL

AFTER death
AFTER obtaining a grant of representation and a court order to transfer or sell
CAN enjoy & control your property till you die

LOVE & AFFECTION

ANYTIME during lifetime
Transfer between parents and children, husband and wife and grandparents and grandchildren

TRUST DEED

ANYTIME during lifetime or after death
DO NOT need to get grant of representation after you die

GIFT DEED

ANYTIME during lifetime

REAL PROPERTY GAINS TAX

The person who disposes the property shall pay real property gains tax from the date of disposal.

INDIVIDUAL – CITIZENS

Year 1 – Year 3 : 30%

Year 4 : 20%

Year 5 : 15%

Year 6 and above : 5%

Base Year (2020) : 2013

INDIVIDUAL – NON-CITIZENS/ PERMANENT RESIDENTS

Year 1 – Year 5 : 30%

Year 6 and above : 10%

Base Year (2020) : 2013

COMPANIES

Year 1 – Year 3 : 30%

Year 4 : 20%

Year 5 : 15%

Year 6 and above : 10%

STAMP DUTY

The person who acquires/ receives the property shall pay ad valorem stamp duty. The stamp duty is assessed based on the market value of the property on the date you receive the property.

TRANSFER BY WILL & COURT ORDERS

RM10.00

TRANSFER BY LOVE & AFFECTION

Between Husband & Wife : 100% discount
Between Parents & Children: 50% discount
Between Siblings : Full rate – based on the market value

TRANSFER BY TRUST/GIFT

FULL rate based on the market value of the property
Rate (As of 2.4.2020) –

1st RM100k : 1%

Next RM400k : 2%

Next RM500k : 3%

Remaining sum : 4%

The contents of this article do not constitute legal or other professional advice or an opinion of any kind. It is provided for general information purposes only.

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By Chloe Lim & Carmen Leong