Tax Budget 2023 Highlights: Stamp Duty and Real Property Gains Tax

Some of the key tax highlights:

Stamp Duty

1. Gift of Real Property between Family Members

Presently, gift of real property between husband and wife is given full stamp duty exemption on the transfer of ownership while gift between parents and child is given a 50% stamp duty remission. Gift between grandparents and grandchild is assessed in full.

It is now proposed that gifts between parents and child or grandparents and grandchild to enjoy the following:

• 100% stamp duty exemption on the stamp duty applicable for the first RM1million of the property value and
• 50% stamp duty remission on the stamp duty applicable for the balance of the property value that exceeds RM1 million.

Real Property Gains Tax (RPGT)

1. NGNL for disposal of real property under court order for divorce or marriage dissolution.

It is proposed that transfer of property between former spouses due to divorce or dissolution of marriage under court order or decree will be treated as no-gain-no-loss and therefore no RPGT is payable on disposer / transferor.

2. Transfer of real property into a company in exchange for substantial shares

Presently, transfer of assets owned by individual, by his wife or by an individually jointly with his wife or with a connected person to a company controlled by the individual, by his wife or by the
individual jointly with his wife or with a connected person for a consideration consisting substantially of shares in the company and the balance of a money payment would be a NGNL transfer.

It is proposed that this NGNL provision will not apply if the company is incorporated outside Malaysia.

Other Budget 2023 Proposals

• Bring me to PERSONAL TAX PROPOSALS
• Bring me to CORPORATE & BUSINESS TAX PROPOSALS
• Bring me to STAMP DUTY & RPGT PROPOSALS
• Bring me to E-Invoicing

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