Did you know that a transfer of property between a husband and his wife does not attract any stamp duty? Yes, it is 100% exempted. So husbands who are reading this may want to gift a property to your wife? As for wives who are reading this, you could share this news with your husband yeah. No need to directly say, ‘please transfer to me.’ Maybe just say that this is an INTERESTING article. Haha.
HOWEVER, if I were to transfer the property to my daughter, this 100% exemption in stamp duty does NOT apply yeah. There are however some good news still when this transfer of ‘love’ is transacted between parents and their children. Happy reading the announcement by Financ Minister Tengku Zafrul yeah.
Article in freemalaysiatoday.com. The government has no plans to provide the 100% stamp duty exemption for transfer of property from parents to children. This 100% exemption in stamp duty is only for transfer of assets between husband and wife. However there is a remission of 50% when there is this transfer of property between parents and children. This is applicable since 1 January 2020 for Malaysian citizens only.
He explained further, “The government has announced a remission of 50% in stamp duty for transfer of property based on love between parents and children. This is to encourage property transfer between parents and children to be done when they are alive to avoid problems in property claims after the death of one of the parties concerned.” Please do read the full article here: Article in freemalaysiatoday.com.
Property gift is not the only gift
It would be good to gift them the gift of education yeah, I mean for parents with children. That property could perhaps be sold by the children and turned into cash but without financial education, the money may not last that long. Just look at how some of these younger people are spending their money…
It may also be prudent to only gift them that property if it’s really necessary. By the way, giving lots of money to someone who’s unable to handle the sudden wealth well is not an act of love but more of a potential financial crisis to them. Overspending is quite common for people with sudden wealth. Just look at the story of many lottery winners…
The stamp duty exemption is certainly a plus. Quite a good savings too. Here is how much you need to pay when it comes to stamp duty yeah (click to know). No idea if this stamp duty exemption will be forever or until the time when I needed to think about gifting a property to my children. To me the most important thing remains that they (my children) should be good people. I am not raising them to just be happy people. Happy educating them. Just remember that it would be good to buy a property for them for the future yeah.
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