Calculation of Stamp Duty on SPA & Memorandum of Transfer and Instrument on Loan Agreement
Stamp duty on the sale and transfer of a property is calculated based on the purchase price. In addition, if a loan was taken out to finance the purchase of the property, the stamp duty payable would be a flat rate of 0.5% of the total loan amount.
Under Budget 2019, the stamp duty rates on the instrument of transfer (MOT) were increased from 3% to 4% for properties costing more than RM1 million and are calculated on a tiered basis as follows:
Property Price | Percentage |
First RM100,000 of the property price | 1% |
From RM100,001 to RM500,000 | 2% |
From RM500,001 to RM1 million | 3% |
Everything above RM1 million | 4% |
Say for instance you purchased a property valued at RM600,000 and you took a loan of RM540,000.
Your total stamp duty would be:
Stamp Duty on MOT + Stamp Duty on Home Loan
= (First RM100,000 x 1%) + (Next RM400,000 x 2%) + (Remaining RM100,000 x 3%) + (RM540,000 x 0.5%)
= (RM1,000 + RM8,000 + RM3,000) + (RM2,700)
= RM12,000 + RM2,700 = RM14,700