Today, someone asked Can you guarantee to get a stamp duty exemption for first-time house buyer?

We said, “Nope, we can’t guarantee it.”

And he goes on and on about, someone can guarantee it.

Now, maybe he doesn’t understand the process of getting the stamp duty exemption. It is not up to the lawyer, bank or even us to decide.

The one holding power is the Inland Revenue Board Of Malaysia (LHDM) – Stamp Duty Office.

As long as a person fulfils the stamp duty exemption criteria, you will receive the exemption- most of the time.

Check out the stamp duty exemption criteria here.

https://malaysiahousingloan.com/stamp-duty-in-malaysia/

However, the tricky part is when the person doesn’t fulfil the criteria and assume he meets the requirements. Even if this happens, you can appeal the decision.

Notis Taksiran Pindah Milik Harta Tanah(Duti Ad Valorem)

Typically, the stamp duty office will issue a stamp duty notice or Notis Taksiran Pindah Milik Harta Tanah(Duti Ad Valorem). The letter will state how much stamp duty you need to pay and if you get the exemption.

They even attach a calculation of how the stamp duty is calculated.

If you don’t receive this letter, you should ask the SPA lawyer because they are the ones who help you to request the exemption.

In some cases where the client worried the SPA lawyer would tell them to pay a full stamp duty whilst their stamp duty exemption is approved.

Well, to avoid this.

Again you can request the Notis Taksiran Pindah Milik Harta Tanah(Duti Ad Valorem) before paying your lawyer the stamp duty.

Also, remember to pay your stamp duty before the datelines or within 30 days issuance of Notis Taksiran Pindah Milik Harta Tanah(Duti Ad Valorem).

Yeah, there is a penalty if you are paying late for the stamp duty.

The penalty is,

  • Pay within three months of the final dateline, RM25 or 5% of the stamp duty, whichever is higher.
  • If you pay after three months but within six months of the final dateline, RM50 or 10% of the stamp duty, whichever is higher.
  • And if you pay after six months of the final dateline, RM100 or 20% of the stamp duty, whichever is higher.

If you are in the process of appealing for your stamp duty, sometimes the lawyer will advise you to pay the stamp duty first and claim it back later to avoid the penalty.

However, it is still best to consult your SPA lawyer for your case, as everyone will have a slightly different situation.

And also, this is the reason why you are paying them a tremendous amount of money; you are paying for their work and part of the work is giving you the best consultation.

I hope this article is fruitful to you.

Good luck!

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