Tax reliefs for real estate, automotive industries under Penjana

Soo Wern Jun
People are pictured seen at the balcony of an apartment in Kuala Lumpur April 4, 2020. — Picture by Firdaus Latif

KUALA LUMPUR, June 5 — In a bid to boost the real estate market, Prime Minister Tan Sri Muhyiddin Yassin today announced several tax incentives under the Short-Term Economic Recovery Plan dubbed Penjana.  

First on the list is the Home Ownership Campaign, which will be reintroduced and throughout this campaign, he said stamp duty exemption will be offered on property transfers and loan agreements for the purchase of houses valued between RM300,000 and RM2.5 million. 

“The stamp duty exemption on property transfers is limited to the first RM1 million of house value, while stamp duty is fully vested on its loan agreement,” said Muhyiddin during his special address.

He added that this exemption is applicable for sales and purchase agreements signed from June 1 to May 31, 2021 and subject to a condition that the developer must offer at least 10 per cent discount. 

Another incentive under this sector would be Real Property Gains Tax (RPGT) exemption granted to Malaysian citizens upon disposal of a residential home done from June 1 to December 31, 2021. 

“This is an exemption only limited to three residential units for each individual,” he said. 

In addition, Muhyiddin said the financing limit for third home loans worth RM600,000 and above is no longer subjected to 70 per cent of the current value of the house throughout the implementation of the Home Ownership Campaign. 

“This is however subject to risk management of financial institutions,” he said. 

As for the automotive industry, to encourage growth, the government has agreed to grant 100 per cent sales tax exemption on sales of locally-assembled passenger vehicles, and 50 per cent for imported passenger vehicles. 

“This will be effective from June 15 to December 31, 2021,” said Muhyiddin.

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