What is Home Ownership Campaign (HOC) 2020-2021?
HOC 2020-2021 is an initiative by the Government to stimulate the housing sector and help buyers in homeownership. As such, the Government offers stamp duties exemptions on the Instrument of Transfer and Instrument on Loan Agreement.
The Campaign is open to ALL Malaysian individuals.
What is the duration of the Campaign period?
The Home Ownership Campaign 2020-2021 period is from 1 June 2020 to 31 May 2021
What are the eligibility criteria for exemption?
The Sale and Purchase Agreement (SPA) must be signed within the Campaign period.
Exemptions are applicable only for residential properties (including serviced apartments and SOHO) that are completed or under construction, and governed by the Housing Development Act with valid Developer’s License (DL) and Advertisement and Sales Permit (AP) and/or Certificate of Completion and Compliance (CCC) or verified by KPKT (for developments of 4 units and below).
Only residential properties in the primary market are eligible for the stamp duties exemptions, thus sale must be from a developer to a purchaser.
A minimum 10% discount must be given by the developer, provided that the residential units are not subject to Government price control.
The discount is given based on approved APDL pricing for projects under construction and registered selling price for completed projects. The discounted price must be reflected in the SPA.
Eligible properties in Peninsular Malaysia must be registered with the Real Estate and Housing Developers’ Association (REHDA) Malaysia, while eligible properties in Sabah and Sarawak must be registered with Sabah Housing and Real Estate Developers Association (SHAREDA) and Sarawak Housing and Real Estate Developers’ Association (SHEDA) respectively.
What is the amount of the exemption on Instrument of Loan Agreement? Is it based on house price or loan amount?
The amount of exemption on Instrument of Loan Agreement is 0.5% of the loan amount.
However, please note that under HOC, the exemption is applicable for all houses with selling price from RM300,001 to RM2.5 million (price before discount).
Conditions for Registration of Residential Properties for Purpose of Stamp Duty Exemption Exemption Period
Subject to Stamp Duty ( (Exemption) (No.3) Order 2020 P.U. (A) 216/2020 and Stamp Duty (Exemption) (No.4) Order 2020 P.U. (A) 217/2020 dated 28 July 2020, stamp duty exemptions are given for residential properties which are sold during the period between 1 June 2020 to 31 May 2021. Eligibility for Exemption
Only ‘residential properties’, defined as houses, condominium units, apartments and flats including service apartments and SOHO built and used as dwelling – with valid Developer’s Licence (DL) and Advertisement and Sale Permit (AP) or verified by the Ministry of Housing and Local Government (KPKT) (where applicable) or completed with CCC/CF (where applicable) are eligible to register, all other property types are not included in this exercise;
The service apartment and SOHO must be for residential use only and cannot be converted for commercial activities;
Property price (before discount) is within the range of RM300,001 to RM2.5 million;
It must be a sale from a developer to a purchaser or co-purchasers, all of whom are Malaysian citizens;
The stamp duty exemptions are applicable for the purchase of residential unit/s for Sale & Purchase Agreement executed between 1 June 2020 to 31 May 2021;
A minimum of 10% discount (from property price) applicable to all units that are not subjected to government price control;
Eligible properties in Peninsular Malaysia must be registered with REHDA Malaysia. Eligible properties in Sabah and Sarawak must be registered with SHAREDA (shareda.com) and/or SHEDA (www.sheda.org.my) respectively;
The stamp duty exemption is applicable to the following in relation to the purchase of residential property by an individual Malaysian citizen:
Instruments of Transfer
Instruments on Securing Loans
Frequently Asked Question - Purchasers
1) Is there a list of registered projects under HOC?
REHDA will publish/update the list of participating developers and projects from time to time.
Please note that developers are not required to register all units under the development for HOC and only units registered for HOC 2020-2021 are entitled for stamp duty waiver.
2) I have signed an SPA in June 2020, and I have paid the stamp duties on Instrument of Transfer and Instrument on Loan Agreement. Can I get a refund?
Yes, provided that the 10% discount is reflected in the SPA and the developer registers the project/unit with REHDA/SHAREDA/SHEDA for HOC, However, you would have to apply to LHDN for your refund within the period stipulated in the Stamp Act 1949 (Act 378).
3) What if the developer did not give me a 10% discount?
Not all residential projects/units by a developer are required to register under HOC. As such, we advise that purchasers speak to the developers involved for clarification before proceeding with your purchase.
4) Are there any fees that purchasers need to pay to be able to buy a house under HOC?
No, purchasers are not imposed with any fee either by the developer, REHDA/SHAREDA/SHEDA or the Government. Only developers are imposed with the registration and certification fees.
5) Can I purchase under a company name?
No, purchases are for Malaysian individuals only.
6) Can I purchase more than one residential unit and get stamp duties exemptions on all of them?
Yes, there is no limitations on number of units that can be purchased.
7) Am I entitled for the HOC waiver if I purchase a house from my friend (secondary market)?
No, the stamp duty waiver is only applicable for residential properties purchased from a developer (primary market) that are registered with REHDA, SHAREDA or SHEDA.
8) En Ali purchased a RM500,000.00 house for his son Bakar. The SPA is executed under Bakar’s name only but the housing loan agreement is under two names i.e. En Ali and Bakar. Will En Ali and Bakar be entitled to the stamp duty exemption on the Instrument of Transfer and Instrument on Loan Agreement?
Bakar will be eligible for the stamp duty exemption on instrument of transfer (MoT).
With regards to the stamp duty exemption for the instrument on loan agreement, as the eligibility is dependent on the name(s) stated in the SPA, only Bakar will be eligible for the partial exemption but not En Ali.
For example, En Ali and Bakar has secured a 90% margin of financing (RM450,000). As the loan is under 2 names, the amount of loan is divided equally (En Ali: RM225,000 / Bakar: RM225,000). Bakar will be eligible for stamp duty exemption as his name is on the SPA. On the other hand, En Ali will not be eligible for stamp duty exemption as his name is not on the SPA.
Memorandum of Transfer (MoT)
Note: If the loan agreement is under three names, the loan amount will be divided into 3 portions equally (ie RM150,000 each).