Property360Digest e-magazine Issue # 7 - 2020
Malaysian Government announced various fiscal initiatives to help the Rakyat
The stamp duty exemption is a welcome move as eliminating stamp duty will reduce the upfront payments and serve as an incentive to encourage home ownership among the 1st time buyers . The exemption is for both the primary and secondary markets thereby giving the 1st time home buyers wider choices . The proposed full stamp duty waiver complements the RPGT exemption introduced in June 2020 under Penjana whereby gains from the disposal of residential properties by Malaysians ( limited to 3 units per individual ) between 1 June2020 and 31 December 2021 are exempted from RPGT . These incentives are expected to spur more activities in the primary and secondary residential markets which are further supported by the current low interest rate environment .
The Government will also be collaborating with selected financial institutions to provide rent-to-own schemes which will be effective until 2022 involving 5,000 units under the 1 Malaysia Peoples ’ housing scheme ( Pr1ma ), with a total value of more than RM1billion reserved for 1st time home buyers .
It is hoped that these measures for the property sector in Budget 2021 will help realign the supply and demand of
The housing market has much to benefit from this budget .
Harvindar , a Fellow of The Chartered Association of Certified Accountants , is a member of the MIA and Chartered Tax Institute of Malaysia . He started his professional career as a tax consultant in PricewaterhouseCoopers ( PwC ) in 1994 . In 2001 , he moved to Ernst & Young ( EY ). After a six year stint , he left in 2006 to set up his own firm Harvey & Associates dabbling in all areas of taxation , including cross border taxation , tax audits and investigations , tax advisory , seminars and appearing at the Special Commissioners of Income Tax for tax cases that were brought to the courts . In 2009 , he was invited to join as the tax partner in SCS Global Consulting ( M ) Sdn Bhd , a boutique firm that provides accounting , consulting and taxation services to Japanese clients . Over the years , it has grown to have a presence in 16 countries , mostly in Asia and also in the Netherlands , the US , and Australia .
the housing market in Malaysia and are seen as positive moves to facilitate the purchase of homes for B40 and M40 groups and first - time homebuyers .
8