Transfer by Way of Love and Affection refers to the voluntary transfer or gifting of property without consideration, typically involving familial relationships such as between spouses, parents and children, or grandparents and grandchildren. You might want to read about the Procedure to Change the Name in Property Grant to Children as a Gift to learn more about the documents required for this type of transfer.
Stamp Duty
Stamp Duty (Remission) Order 2019
According to the Stamp Duty (Remission) (No. 2) 2019 P.U.[A] 369, effective from January 1, 2020, it was gazetted that 50% of the stamp duty can be imposed on any instrument of transfer of immovable property that constitutes a voluntary disposition between parents and children or vice versa, based on the market value of the property. However, voluntary disposition between spouses is entirely exempt from stamp duty.
Stamp Duty Exemption 2023 for transfer by way of love and affection
In June 2023, the government gazetted a stamp duty exemption for transfer by way of love and affection transactions effective from April 1, 2023. This exemption order is known as (Exemption)(No. 3) 2023, P.U.[A] 178. You can refer to this link to view the full gazette.
Details of the stamp duty exemption
According to the stamp duty exemption order, the government has agreed that the stamp duty on the instrument of voluntary transfer of immovable property involving parents to children and grandparents to grandchildren is fully exempted for the first RM1,000,000.00 of the property’s value. The remaining value of the property is subject to the ad valorem duty rate, with a 50% remission of the stamp duty imposed. This stamp duty exemption order must be attached to the “Deed of Gift” during the stamping process on the Inland Revenue Board of Malaysia’s portal.
Exemption for familial relationships only
It should be noted that this stamp duty exemption order does not apply to givers and recipients who do not have familial relationships as mentioned above. Therefore, the recipient’s status in the transfer needs to be examined to determine the stamp duty costs that will be imposed.
